Given the information below for HooYah! Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual PE and P/CFPS ratios from the average PE and average P/CFPS ratio calculations. When computing annual growth rates, use a positive sign on the annual rate of change if the per share value increased in value and use a negative sign on the annual rate of change if the per share value deceased in value.) Year 2014 2015 2016 2017 2018 2019 EPS CFPS -17.00 Price $ 16.00 $ 52.50 -3.29 -14.50 $124.00 $201.00 $91.00 $21.50 -4.00 -2.20 -.43 .04 .06 -3.20 -.10 .08 .08 SPS 13.00 21.50 22.10 25.60 29.10 29.95 Answer is complete but not entirely correct. Share Price Using PE ratio $ 182.26 Using P/CF ratio $ 97.82 Using P/S ratio $ 125.80
Given the information below for HooYah! Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative annual PE and P/CFPS ratios from the average PE and average P/CFPS ratio calculations. When computing annual growth rates, use a positive sign on the annual rate of change if the per share value increased in value and use a negative sign on the annual rate of change if the per share value deceased in value.) Year 2014 2015 2016 2017 2018 2019 EPS CFPS -17.00 Price $ 16.00 $ 52.50 -3.29 -14.50 $124.00 $201.00 $91.00 $21.50 -4.00 -2.20 -.43 .04 .06 -3.20 -.10 .08 .08 SPS 13.00 21.50 22.10 25.60 29.10 29.95 Answer is complete but not entirely correct. Share Price Using PE ratio $ 182.26 Using P/CF ratio $ 97.82 Using P/S ratio $ 125.80
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:Given the information below for HooYah! Corporation, compute the expected share price at the end of 2020
using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for
2020. (Do not round intermediate calculations. Round your answers to 2 decimal places. Exclude negative
annual PE and P/CFPS ratios from the average PE and average P/CFPS ratio calculations. When computing
annual growth rates, use a positive sign on the annual rate of change if the per share value increased in
value and use a negative sign on the annual rate of change if the per share value deceased in value.)
2014
Year
2015
EPS
CFPS
-17.00
Price $ 16.00 $ 52.50
-3.29
-14.50
2016
$124.00
2017
$201.00
2018
$ 91.00
2019
$ 21.50
-4.00
-2.20
-.43
.04
.06
-3.20
-.10
.08
.08
SPS
13.00
21.50
22.10
25.60
29.10
29.95
Answer is complete but not entirely correct.
Share
Price
Using PE ratio
$
182.26 X
Using P/CF ratio
$
97.82
Using P/S ratio
$
125.80
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