Question

juniper trees has earnings per share of $1.38, all of which is added to retained earnings. what is the value of a share of its stock if the pe ratio is 9.8 and market-to-book ratio is 2.5?

Answer 1

A share of stock is worth $13.52 if  the value of a share of its stock if the pe ratio is 9.8 and market-to-book ratio is 2.5.

What does stock price mean?

Value stocks are stocks of companies that trade at a low price compared to their fundamentals such as dividends, earnings and sales, making them attractive to value investors. Value stocks are generally contrasted with growth stocks.

The Price Earnings Ratio (P/E Ratio) is a ratio that illustrates a company's value and informs investors of the market and the price per unit that will be paid now or in the future ( future). It is determined as

Price-to-earnings ratio is calculated as Stock Price/Earnings Per Share.

9.8 = $1.38 Per Share Price of the Stock

Share cost is equal to 9.8 times $1.38. = $13.52

A share of stock is worth $13.52

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