Below is pertinent information regarding SM Investments Corporation (SM). If you were an Investment Advisor, what would be your recommendation for SM using Fundamental Analysis? (Note: complete the table, then compute for the target prices for 2016 and 2017 based on P/E and P/B ratios, then make your recommendation.) STOCK DATA Last Traded Price (10/7/16) 675.00 Outstanding Shares (Million) 1,204 FORECAST SUMMARY (PHP 2015Actual 2016Forecast 2017Forecast MIL) Revenues 295,878 323,008 347,867 EBITDA 68,270 76,428 84,038 Net Profit 28,455 32,334 35,675 Book Value 427,103 300,554 324,598 Industry P/E 19.9 19.1 17.5 Industry EPS Growth 9.0% 4.0% 9.0% Industry P/B 2.0 2.1 1.9 Industry ROE 12.0% 12.1% 11.0% EPS PE Ratio BVS PB Ratio
Below is pertinent information regarding SM Investments Corporation (SM). If you were an Investment Advisor, what would be your recommendation for SM using Fundamental Analysis? (Note: complete the table, then compute for the target prices for 2016 and 2017 based on P/E and P/B ratios, then make your recommendation.) STOCK DATA Last Traded Price (10/7/16) 675.00 Outstanding Shares (Million) 1,204 FORECAST SUMMARY (PHP 2015Actual 2016Forecast 2017Forecast MIL) Revenues 295,878 323,008 347,867 EBITDA 68,270 76,428 84,038 Net Profit 28,455 32,334 35,675 Book Value 427,103 300,554 324,598 Industry P/E 19.9 19.1 17.5 Industry EPS Growth 9.0% 4.0% 9.0% Industry P/B 2.0 2.1 1.9 Industry ROE 12.0% 12.1% 11.0% EPS PE Ratio BVS PB Ratio
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Below is pertinent information regarding SM Investments Corporation (SM). If you were an Investment Advisor, what would be your recommendation for SM using Fundamental
Analysis? (Note: complete the table, then compute for the target prices for 2016 and 2017 based on P/E and P/B ratios, then make your recommendation.)
STOCK DATA
Last Traded Price (10/7/16)
675.00
Outstanding Shares (Million)
1,204
FORECAST SUMMARY (PHP
2015Actual 2016Forecast 2017Forecast
MIL)
Revenues
295,878
323,008
347,867
EBITDA
68,270
76,428
84,038
Net Profit
28,455
32,334
35,675
Book Value
427,103
300,554
324,598
Industry P/E
19.9
19.1
17.5
Industry EPS Growth
9.0%
4.0%
9.0%
Industry P/B
2.0
2.1
1.9
Industry ROE
12.0%
12.1%
11.0%
EPS
PE Ratio
BVS
PB Ratio
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