The current number of shares outstanding for BioGene is 23 million and its current PE ratio is
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The current number of shares outstanding for BioGene is 23 million and its current PE ratio is 49. Assuming a yearly growth in earnings of 50 percent for the next four years and a decline in the PE ratio to 25, this implies a valuation of $962 million in 2022. Assume InterWeb’s earnings (after-tax profits) in 2022 are $6.3 million as stated in their business plan. Assigning a PE ratio of 50 to InterWeb in 2022, what will be their valuation?
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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