Question: You are attempting to value a growth stock using a P/E Multiple Model, utilizing a PEG ratio approach, If a reasonable PEG ratio is 2

You are attempting to value a growth stock using a P/E Multiple Model, utilizing a PEG ratio approach, If a reasonable PEG ratio is 2 and the company in question is expected to grow earnings at around 30% for the next 3-5 years, what is a reasonable P/E for your valuation? Assume that the market multiple is 20x.

Group of answer choices

40x

80x

20x

60x

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