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

  1. Please answer the questions based on the table below contains some information about the Jordan Air Co.  Please answer the questions based on the table below contains some
  2. 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)
  3. 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)
  4. 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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