Business, 25.02.2021 17:50 jonnaevans4856

Company A shares are currently trading at $20 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2014 are $1.50 per share. Company A has 200 million diluted shares outstanding. Company A’s major competitors are trading at an average share price / 2014 Expected EPS of 15.0x. Using the comparable company analysis valuation method, Company A shares are:.
a. $2.50 per share overvalued
b. $2.50 per share undervalued
c. Need more information
d. Appropriately priced

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Company A shares are currently trading at $20 per share. A survey of Wall Street analysts reveals th...