The financial information of Z, Inc. is as follows:
EBIT/share: $6
EPS: $4
Growth rate: 10%
Stock Price per share: $60
The industry averages of price-EBIT ratio, PE ratio and PEG ratio are 10, 16, and 1.3 respectively.
1. The implied stock price of Z, Inc. using the PE ratio is____
2. The implied stock price of Z, Inc. using the PEG ratio is____
3. The implied stock price of Z, Inc. using the price-EBIT ratio is____
4. The ratio indicates that Z is undervalued is (A. PE ratio, B. PEG ratio, C. Price-EBIT ratio, enter A/B/C)____
