On a particular date, Amazon has a stock price of $150.50 and an EPS of $12.50. Its competitor, Walmart, had an EPS of $3.00. What would be the expected price of Walmart's stock on this date, if estimated using the method of comparables?

On a particular date, Amazon has a stock price of $150.50 and an EPS of $12.50. Its competitor, Walmart, had an EPS of $3.00. What would be the expected price of Walmart's stock on this date, if estimated using the method of comparables?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 1OIC

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Question

Can you demonstrate the accurate method for solving this general accounting question?

On a particular date, Amazon has a stock price of
$150.50 and an EPS of $12.50. Its competitor,
Walmart, had an EPS of $3.00. What would be the
expected price of Walmart's stock on this date, if
estimated using the method of comparables?

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