Question: Lets act as if your professor knows something about financial statement analysis and modeling and use his $475 intrinsic value price for Chipotle to recalculate
Lets 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?
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?
Holding Chipotles 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)
Looking at this another way, holding Chipotles operating expenses at 90% of sales what would Chipotles sales need to be to earn $20 per share? (Again, hold the share count constant)
Assume that Chipotles 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?
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