Hino is a young car manufacturer and has yet to make a profit. Tsuyoshi is trying  to place a value on Hino’s stock, but it pays no dividends and he obviously cannot calculate a P/E ratio. As a result, he decides to look at other stocks in the automobile manufacturing industry to see if he can find a way to value this company. He finds the following information (based on per-share data in thousands of yen):

Estimate a market value for Hino. Discuss how the estimate could change if Hino was expected to grow much faster than the other automobile manufacturers.

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Sales Profit Book value Market value Hino ¥14.3 -¥14.3 -¥2.86 ? Honda ¥286.00 ¥14.30 ¥2.86 ¥29.32 Daihatsu ¥858.00 ¥57.20 ¥5.72 85.8 Mazda ¥1,144.00 ¥114.40 ¥ 11.44 ¥111.54