Question

sankey company has earnings per share of $4.10. the benchmark pe is 19.1 times. what stock price would you consider appropriate?

Answer 1

Earnings per share for Sankey Company are $4.10. 19.1 is the benchmark PE. I believe $4.66 is a reasonable stock price.

What is EPS stand for?

The term "earnings per share" (EPS) refers to a company's net profit divided by the total number of outstanding common shares. A popular indicator for determining corporate value is earnings per share (EPS), which shows how much money a firm produces for each unit of its stock.

How is the price per share determined?

To determine earnings per share, consider a company's net income and deduct preferred dividends from it. After that, multiply that sum by the typical amount of ongoing common shares.

Earnings per share for Sankey Corporation are $4.10.

19.1 times the benchmark PE

Therefore, the following formula can be used to determine the proper stock price.

= 19.1/4.10

= $4.66

Therefore, $4.66 is the appropriate stock price.

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