Suppose that the average P/E multiple in the healthcare industry is 21

Subject:BusinessPrice:9.82 Bought3

Share With

Suppose that the average P/E multiple in the healthcare industry is 21. XYZ Imaging is expected to have an EPS of $1.50 this year. Operating margins are about 10%.  The Company's operating margins and growth rates are similar to the rest of the industry. XYZs stock price was up about 5% last year.  The value of XYZ Imaging stock, using a relative value approach, should be_____.

 

$35.55

 

$72.00

 

There is not a correct answer listed

 

$63.00

 

$31.50