Company X
E=20 (Next years annual earnings)
WACC=12%
g=5% (Analysts expected growth over next 5 years)
Industry
P/E=15 (ttm)
Determine the companys value according to the following methods.
Identify the methods.
a. Determine the value relative to the industry.
b. Determine the intrinsic value assuming a 5% growth rate for infinity.