In: Finance
Given the information below for Exxon Mobil (XOM). Compute the
expected share price at the end of 2021 using Only
Price/EPS (PE) ratio analysis. Show your
work
2017 | 2018 | 2019 | 2020 | |
Price | $ 93 | $ 79 | $ 68 | $ 73 |
Revenues ($M) | $ 404,552 | $ 477,359 | $ 310,586 | $ 383,221 |
Net Income ($M) | $ 40,610 | $ 45,220 | $ 19,280 | $ 30,460 |
# of shares out (M) | 5,000 | 5,000 | 5,000 | 5,000 |
PE Ration = Price of Share/Earning Per Share | ||||
2017 | 2018 | 2019 | 2020 | |
Price | $ 93.00 | $ 79.00 | $ 68.00 | $ 73.00 |
Revenues ($M) | $ 4,04,552 | $ 4,77,359 | $ 3,10,586 | $ 3,83,221 |
Net Income ($M) | $ 40,610 | $ 45,220 | $ 19,280 | $ 30,460 |
# of shares out (M) | 5,000 | 5,000 | 5,000 | 5,000 |
EPS = Net Income / No of Shares | $ 8.12 | $ 9.04 | $ 3.86 | $ 6.09 |
PE Ratio = Price of Share/Earning Per Share | 11.45 | 8.74 | 17.63 | 11.98 |