Comparable transaction analysis

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Company A shares are currently trading at $50 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2003 are $2.50 per share. Company A has 300 million diluted shares outstanding. Company A's major competitors are trading at an average share price / 2003 Expected EPS of 23.0x.
When gathering financial documents in preparation for comparable transaction analysis for publicly traded target companies, in addition to any filed merger documents:

1. Use the most recently available financials (10-Ks and 10-Qs)
2. Use the most recently available financials (10-Ks and 10-Qs) as of the announcement date
3. Use the most recently available financials (10-Ks and 10-Qs) as of the closing date
4. None of the above

 

Reference no: EM1344103

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