In this example, we use alternative definitions of forward to compute forward P/Es. Exhibit 4 presents actual

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In this example, we use alternative definitions of “forward” to compute forward P/Es.

Exhibit 4 presents actual and forecasted EPS for Boyd Gaming Corp. (NYSE: BYD)

that owns and operates 21 gaming entertainment properties in Nevada, Mississippi, Illinois, New Jersey, Indiana, Kansas, Iowa, and Louisiana.

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On 9 August 2013, BYD closed at $12.20. BYD’s fiscal year ends on 31 December. As of 9 August 2013, solve the following problems by using the information in Exhibit 4:
i. Calculate BYD’s forward P/E based on the next four quarters of forecasted EPS.

ii. Calculate BYD’s NTM P/E.

iii. Calculate BYD’s forward P/E based on a fiscal-year definition and current fiscal year (2013) forecasted EPS.

iv. Calculate BYD’s forward P/E based on a fiscal-year definition and next fiscal year (2014) forecasted EPS.

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Related Book For  book-img-for-question

Equity Asset Valuation

ISBN: 9781119850519

3rd Edition

Authors: Jerald E Pinto, CFA Institute

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