You want to value your gaming stock, Overfuse (OFE), using the P/E ratio of a similar firm, KS Gaming (KSG). KSG has 150,000 shares outstanding, a per-share price of $16 and total annual earnings of $600,000. Over fuse has 1 million shares outstanding and total annual earnings of $900,000.

What is your estimate of the price per share of OFE?

Answer rating: 100% (QA)

PE ratio of KSG Price per share Earnings per ... View the full answer