A stock analyst uses multiples to value a stock stock has


Problem

A stock analyst uses "multiples" to value a stock.

The stock has earnings per share of $4.00 share.

The stock has sales revenue per share of $40/share.

The benchmark PE ratio is 18.

The analyst finds the same stock price using the price-sales ratio multiple as the analyst finds using the PE ratio multiple.

What is the benchmark price-sales ratio multiple the analyst used?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: A stock analyst uses multiples to value a stock stock has
Reference No:- TGS02777900

Expected delivery within 24 Hours