Sankey Company has earnings per share of $4.30. The benchmark PE is 19.5 times. What stock price would you consider appropriate?
Question
Solution 1
To calculate the appropriate stock price, you would multiply the earnings per share (EPS) by the Price/Earnings (P/E) ratio.
Here's how you do it:
Identify the EPS and P/E ratio. In this case, the EPS is $4.30 and the P/E ratio is 19.5.
Multiply the EPS by the P/E ratio.
So, $4.30 (EPS) Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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