Question: Given the information below for Seger Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical

Given the information below for Seger Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Year 2016 2017 2018 2019 2020 2021
Price $ 91.60 $ 97.50 $ 96.20 $ 93.70 $ 115.20 $ 130.60
EPS 4.49 5.20 6.00 6.70 7.45 8.45
CFPS 7.72 8.60 8.98 10.57 12.07 13.28
SPS 47.60 52.60 52.00 55.50 66.70 74.70

Using PE ratio find share price:

Using P/CF ratio find share price:

Using P/S ratio find share price:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!