Question: Suppose that the average P/E multiple in the utilities industry is 16. ABC is expected to have an EPS of R4.50 in the coming year.

Suppose that the average P/E multiple in the utilities industry is 16. ABC is expected to have an EPS of R4.50 in the coming year. The intrinsic value of ABC should be? a. R28.12 b. R93.50 c. R63.00 d. R72.00

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 Economics Questions!