Question: Please answer the questions based on the table below contains some information about the Jordan Air Co. Using the P/E approach, what is the estimate
- Please answer the questions based on the table below contains some information about the Jordan Air Co.
- Using the P/E approach, what is the estimate of the price of Jordan Air in one year ? Based on P/E approach estimate, is the current stock price overpriced or underpriced? Should buy or sell? (2 Marks)
- Using the P/S approach, what is the estimate of the price of Jordan Air in one year ? Based on P/S approach estimate, is the current stock price overpriced or underpriced? Should buy or sell? (2 Marks)
- Using the P/CF approach, what is the estimate of the price of Jordan Air in one year ? Based on P/CF approach estimate, is the current stock price overpriced or underpriced? Should buy or sell? (2 Marks)
Price Ratio Analysis For Jordan Air (Current Stock Price: $40) Earnings Cash Flow Five-year average price ratio 25 (P/E) 7 (P/CF) Current value per share $2.00 (EPS) $6.00 (CFPS) Growth rate 10% 16% Sales 1.5 (P/S) $30.00 (SPS) 14%
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