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Required: Conduct Equity Valuation and Analysis for the years 2018 using: ·         P/E Ratio ·         P/B Ratio ·         PEG Ratio

Required: Conduct Equity Valuation and Analysis for the years 2018 using: ·         P/E Ratio ·         P/B Ratio ·         PEG Ratio

Essentials Of Investments
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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Required:
  1. Conduct Equity Valuation and Analysis for the years 2018 using:
·         P/E Ratio
·         P/B Ratio
·         PEG Ratio
  1. Comment on the results of the year 2018.
  1. Give recommendations on how to improve the performance of the company in the coming years.    
Other Information for Year of 2017: Stock Market Price $ 5.50 Number of Shares Outstanding 1000 Earning Growth Rate 25% Other Information for Year of 2018: Stock Market Price $ 7.00 Number of Shares Outstanding 1000 Earning Growth Rate 10%
Transcribed Image Text:Other Information for Year of 2017: Stock Market Price $ 5.50 Number of Shares Outstanding 1000 Earning Growth Rate 25% Other Information for Year of 2018: Stock Market Price $ 7.00 Number of Shares Outstanding 1000 Earning Growth Rate 10%
Al Salam Firm Balance Sheet Assets Income Statement 2018 2017 2018 2017 Cash $30 $15 Sales $900 $750 Accounts receivable $90 $45 Cost of goods so $360 $300 Inventory $120 $90 Gross profit $540 $450 Current assets $240 $150 SG&A $105 $90 Gross PPE $1,200 $900 EBITDA $435 $360 Accumulated depreciation $570 $420 Depreciation $150 $120 Total Assets $870 $630 EBIT $285 $240 Interest expens $45 $30 Liabilities 2018 2017 Pre-tax earning $240 $210 Accounts payable $60 $60 Taxes (30%) $72 $63 Short-term debt $60 $30 Net Income $168 $147 Current liabilities $120 $90 Long term debt $342 $300 Common stock $150 $150 Retained earnings $258 $90 Total liabilities and Equity $870 $630
Transcribed Image Text:Al Salam Firm Balance Sheet Assets Income Statement 2018 2017 2018 2017 Cash $30 $15 Sales $900 $750 Accounts receivable $90 $45 Cost of goods so $360 $300 Inventory $120 $90 Gross profit $540 $450 Current assets $240 $150 SG&A $105 $90 Gross PPE $1,200 $900 EBITDA $435 $360 Accumulated depreciation $570 $420 Depreciation $150 $120 Total Assets $870 $630 EBIT $285 $240 Interest expens $45 $30 Liabilities 2018 2017 Pre-tax earning $240 $210 Accounts payable $60 $60 Taxes (30%) $72 $63 Short-term debt $60 $30 Net Income $168 $147 Current liabilities $120 $90 Long term debt $342 $300 Common stock $150 $150 Retained earnings $258 $90 Total liabilities and Equity $870 $630
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