Question: You decided to use the relative multiples valuation method to valve the stock of ACLS. The company has EPS of $3.80 per share. FCF of
You decided to use the relative multiples valuation method to valve the stock of ACLS. The company has EPS of $3.80 per share.
FCF of S4.30 per share, and a BV of $7.50 per share. The industry average for these multiples a price to earnings of 16.0, a price to ACF 0f 150 and a price to BV of 7.0. You decided to use a 40-40 20 weight respectively for each of these valuation ratios. What would be the price for ACLS?
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