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A company has an EPS of $2.40, a book value per share of $24.24,and a...

A company has an EPS of $2.40, a book value per share of $24.24, and a market/book ratio of 2.1×. What is its P/E ratio? Do not round intermediate calculations. Round your answer to two decimal places.

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Expert Solution

PE Ratio = Market value per share / EPS

MPS = Book Value per share * Market / Book Ratio

= $ 24.24 * 2.1

= $ 50.90

PE Ratio = Market value per share / EPS

= 50.90 / 2.40

= 21.21 Times

PE Ratio is 21.21 Times

jeff jeffy answered 2 years ago
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