Question: answer is require quick plz Q. No. 3 : Following information is available regarding cement sector: Name of Company Market Price on June 30,2020 EPS

answer is require quick plz

Q. No.

3: Following information is available regarding cement sector:

Name of Company

Market Price on June 30,2020

EPS for year 2019-2020

Book Value per Share

Cherat Cement Co Ltd

74

6

40

D.G.Khan Cement Co Ltd

54

5.5

28

Dadex Eternit Ltd

54

5

30

Essa Cement Ltd

36

4

20

Fauji Cement Co Ltd

16

2

13

Fecto Cement Co Ltd

23

3

10

Gharibwal Cement Ltd

14

1.8

9

You want to purchase the Best cement company which is not traded on stock market and has book value per share of Rs.20 per share.

Required:

(i) Calculate market value of the firm by using P/BV ratio model. (3 Marks)
(ii) Identify which companies are under valued or over valued among above.

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