In: Finance
Balance Sheet (Millions) | Income Statement (Millions) | |||
---|---|---|---|---|
Assets | ||||
Cash | 1,290 | Net Sales | 51,600 | |
Receivables | 9,890 | Operating Costs | 48,246 | |
Inventory | 13,760 | Depreciation | 903 | |
Property, Plant and Equipment | 18,060 | EBIT | 2,451 | |
Total Assets | 43,000 | Interest | 927 | |
EBT | 1,524 | |||
Liabilities and Owners Equity | Taxes | 320 | ||
Accounts Payable | 8,170 | Net Income | 1,204 | |
Notes Payable | 6,677 | |||
Wages Payable | 4,073 | Other Data | ||
Long Term Bonds | 8,815 | Shares Outstanding (millions) | 1000 | |
Total Liabilities | 27,735 | Dividends (millions) | $200.00 | |
Total Equity | 15,265 | Current Interest Rate | 5.00% | |
Total Liabilities and Owners Equity | 43,000 | Tax rate | 21% | |
Stock Price | $50 | |||
Use the data above to calculate the P/E ratio and the M/B ratio.
1.
Price = 50
EPS = Net income/No of shares
= 1204/1000
= 1.204
P/E = Price/EPS
= 50/1.204
= 41.53
2.
Book value of equity = 15265
Market value of equity = No of shares x price
= 1000 x 50
= 50000
M/B = market value of equity /book value of equity
= 50000/15265
= 3.28
1. P/E = 41.53
2. M/B = 3.28