An investor is deciding whether to purchase ABC Inc. shares which currently has a market value of P454 per share and an EPS of P75. The investor would like to compare ABC with the average...


Determine by how much an ABC share/ or the ABC firm is over/(undervalued).


An investor is deciding whether to purchase ABC Inc. shares which currently has a market value of P454 per share and an<br>EPS of P75. The investor would like to compare ABC with the average price-earnings ratio of three of ABC'S closest<br>competitors. The following are the details of the competitors.<br>X Inc.<br>Y Co. Z Corp.<br>Market value per share<br>564<br>2,367<br>142<br>Earnings per share<br>103<br>412<br>23<br>

Extracted text: An investor is deciding whether to purchase ABC Inc. shares which currently has a market value of P454 per share and an EPS of P75. The investor would like to compare ABC with the average price-earnings ratio of three of ABC'S closest competitors. The following are the details of the competitors. X Inc. Y Co. Z Corp. Market value per share 564 2,367 142 Earnings per share 103 412 23

Jun 11, 2022
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