Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. i am looking for confirmation that i've done the c

I am looking for confirmation that I've done the calculation below correctly. If not, can...

70.2K

Verified Solution

Question

Finance

I am looking for confirmation that I've done the calculation below correctly. If not, can you please explain how it should be done?

Calculate the maximum price you would be willing to pay for this stock using the Price-to-earnings approach.

Company name: Alphabet Inc.

Ticker symbol: GOOGL

Current stock price: $128.25

52-week high stock price: $133.74

52-week low stock price: $83.34

EPS = 4.39

P/E Ratio = 28.97

The Price-to-Earnings (P/E) Approach

Stock Price = EPS * P/E Ratio

Stock Price = 4.39 * 28.97

Stock Price = $128.18

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the following data: Monthly Profit of a Gym Month Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Profit ($) 5,650 5,403 5,004 4,677 5,170 5,598 6,419 6,169 5,903 Step 2 of 5: What are the MAD,...

Statistics
Q

An experiment is planned to compare three methods of instruction. Each is tested with a single...

Statistics
Q

The mean cost of domestic airfares in the United States rose to an all-time high of...

Basic Math
Q

Three blocks of masses m m and m are connected by a massless string as...

Physics
Q

Find the vertex focus directrix and focal width of the following parabola Graph the equation...

Algebra
Q

4 Now calculate the standard deviation for the Journey sample 6 5 4 5 6...

Algebra
Q

Accounting
Q

Rodney ranger is a shoe salesman for more Co he is paid $4.60 per hour...

Accounting
Q

Scora Incorporated sells a single product for $50 per unit. Budgeted sales units for the...

Accounting
Q

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the...

Accounting
Q

What is the supporting evidence in a business transaction called? A. Journal ...

Accounting
Q

Instructions On May 3, it was discovered that the following errors took place in journalizing...

Accounting