Question: You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The
You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The prices and earnings of comparable companies are provided below. What is your estimate for the company's stock price? Bulldogs Inc. EPS forecast = $3.01 and Price = $24.31, Crimson Tide Inc. EPS forecast = $1.18 and Price = $18.54.
a.$4.19
b.$4.87
c.$29.02
d.$26.99
e.$24.95
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