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 valuation and earnings of comparable companies are provided below. What is your estimate for the company's stock price? Round to one decimal place. [Hint: Compute the right valuation multiple of the comparables based on the data provided for the company you are valuing. Take simple average of the multiple across the three comparables. Then apply this average multiple to the data provided for Gamecocks Inc.]

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 Finance Questions!