The financial information of Z, Inc. is as follows: EBIT/share: $5 EPS: $3 Growth rate: 15% Stock Price per share: $48 The industry averages of price-EBIT ratio, PE ratio and PEG ratio are 10, 15, and 1.2 respectively. What is the implied stock price of Z, Inc. using the PE ratio

Respuesta :

Answer:

$45

Explanation:

What is the implied stock price of Z, Inc. using the PE ratio?

EPS = $3

Industry PE ratio = 15

Price per share as per industry PE averages = 15* $3

Price per share as per industry PE averages = $45

Hence, the implied stock price of Z, Inc. using the PE ratio is $45