Imagine you are estimating the market value of Hunt Oil Company's stock, which is not publicly traded. So you decide to use the PE model for your valuation. You observe the following PE Ratio comparisons for your project:
Company PE Ratio (from the Internet)
a. Exxon-Mobil 9
b. Chevron 10
c. ConocoPhillips 11
a. What is the implied "appropriate" PE for Hunt Oil Company?
b. Assuming Hunt Oil Company's EPS is = $4.10, what is your estimate for the market value of the company's stock?