You want to use the P / E approach to evaluate the stock price of CBA Inc.

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Question:

You want to use the P

/

E approach to evaluate the stock price of CBA Inc. The industry average P

/

E ratio is

15 .

The firm's expected earnings for next year are $

2

million, with

1

million shares outstanding. What should be the intrinsic value of the stock per share based on this approach?

Posted Date: May 11, 2024 04:06 AM

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You want to use the P / E approach to evaluate the stock price of CBA Inc.

Question:

Expert Answer:

Based on the PE approach the intrinsic value of a stock per share can be estimated using the followi... View the full answer

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