intrinsic value and determine whether it's over or under valued if its current 2020 2021 2022 2023 2024 61.57 39.25 60.93 73.70 77.95 Revenues per sh 4.56 26.68 6.80 9.70 11.70 "Cash Flow" per sh 1.34 16.52 4.30 7.00 8.50 Earnings per sh A .60 .80 .80 .64 .65 .88 Div'ds Decl'd per sh C .65 Cap'l Spending per sh 51.35 Book Value per sh 39.55 45.00 Common Shs Outst'g B Avg Ann'l P/E Ratio Relative P/E Ratio Avg Ann'l Div'd Yield 76.35 70.79 124.24 107.76 97.19 37.7 1.94 .70 50 1.2% 3.9 21 1.1% VALUE LINE PUB. LLC 95.00 93.00 15.0 Bold figures are .86 Value Line estimates 1.2% A stock selling for $20 has an intrinsic value of $10. Is it over or under valu
intrinsic value and determine whether it's over or under valued if its current 2020 2021 2022 2023 2024 61.57 39.25 60.93 73.70 77.95 Revenues per sh 4.56 26.68 6.80 9.70 11.70 "Cash Flow" per sh 1.34 16.52 4.30 7.00 8.50 Earnings per sh A .60 .80 .80 .64 .65 .88 Div'ds Decl'd per sh C .65 Cap'l Spending per sh 51.35 Book Value per sh 39.55 45.00 Common Shs Outst'g B Avg Ann'l P/E Ratio Relative P/E Ratio Avg Ann'l Div'd Yield 76.35 70.79 124.24 107.76 97.19 37.7 1.94 .70 50 1.2% 3.9 21 1.1% VALUE LINE PUB. LLC 95.00 93.00 15.0 Bold figures are .86 Value Line estimates 1.2% A stock selling for $20 has an intrinsic value of $10. Is it over or under valu
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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Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:9.
10.
Use the information below and the P/E as an Earnings Multiplier Model to find this stock's
intrinsic value and determine whether it's over or under valued if its current price is $71.32.
2020 2021 2022 2023 2024
61.57 39.25 60.93 73.70
9.70
4.56 26.68 6.80
1.34
16.52
4.30
7.00
.60
.70
.80
.65
39.55
45.00
95.00 93.00
97.19
15.0 Bold figures are
21 .86
Value Line
estimates
1.1% 1.2%
50
.80
64
76.35
70.79
124.24 107.76
37.7 3.9
1.94
1.2%
VALUE LINE PUB. LLC
77.95 Revenues per sh
11.70 "Cash Flow" per sh
8.50 Earnings per sh A
.88 Div'ds Decl'd per sh C
.65 Cap'l Spending per sh
51.35 Book Value per sh
Common Shs Outst'g B
Avg Ann'l P/E Ratio
Relative P/E Ratio
Avg Ann'l Div'd Yield
A stock selling for $20 has an intrinsic value of $10. Is it over or under valued?
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