You have the following information on Pfizer (PFE) and Johnson & Johnson (JNJ):PFE: P-E (which is Price/EPS) = 28.05 JNJ: EPS = 5.49
- Using Pfizer as a comparable, estimate JNJ's price: ______________
- The current price of JNJ is about $115.48 per share. How does your estimate compare to the current price (high, low or about the same)? ___________________________
- What is one problem with using a comparable (such as Pfizer) to estimate the price of another firm (such as JNJ)?