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Problem 6-21 Price Ratio Analysis (LO4, CFA4) Given the information below for Seger Corporation, compute the...

Problem 6-21 Price Ratio Analysis (LO4, CFA4)

Given the information below for Seger Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Year 2014 2015 2016 2017 2018 2019
Price $ 59.90 $ 65.80 $ 64.50 $ 62.00 $ 83.50 $ 98.90
EPS 4.44 5.15 5.95 6.65 7.30 8.30
CFPS 7.57 8.48 8.89 10.42 11.98 13.22
SPS 37.30 42.30 41.70 45.20 56.40 64.40

Share Price

Using PE ratio=

Using P/CF=

Using P/S ratio=

Solutions

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