Determine the right price for the stock
Course:- Business Economics
Reference No.:- EM132281299

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If target current stock price is $81.93 , the Earnings Per Share Estimate is $5.86 and the price to Earnings ratio is $14.91.

Using the PE valuation model determine the right price for the stock, multiply the industry average P/E ratio by the stocks EPS to estimate the intrinsic price of the stock.

Is this stock overvalued or undervalued when compared to current stock price?

Do you agree with analysts recommendation to hold this stock? Would you consider purchasing this stock? Why?

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