1.Let's act as if your professor knows something about financial statement analysis and modeling and use his $475 intrinsic value price for Chipotle to recalculate the trailing price to earnings ratio for Chipotle.What is this new number?

2.While putting together this information, I found that some analysts are predicting earnings per share of $20 per share in the coming year for Chipotle.How likely is it that Chipotle will be able to achieve $20 in earnings per share - ?What is the best that Chipotle achieved in earnings per share in the best year of the last 10 years?

3.Holding Chipotle's sales at $6,000,000,000 - what would the total operating expenses (as a percentage of sales) need to be to allow Chipotle to earn $20 per share? (Hold the share count constant)

4.Looking at this another way, holding Chipotle's operating expenses at 90% of sales what would Chipotles sales need to be to earn $20 per share? (Again, hold the share count constant)

5.Assume that Chipotle's price is $807 per share, its expected earnings per share are $15 per share in the coming year, and its cost of capital is 9.75%.What would the expected constant growth rate have to be to justify this price?

Answer rating: 100% (QA)

1 To recalculate the trailing pricetoearnings PE ratio for Chipotle using the intrinsic value price ... View the full answer