Conduct scenario analysis with different EPS estimates

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Reference no: EM131911834

a. Your target price is incorrect. Intrinsic Value = Next Year’s EPS x P/E ratio. NOT Price = Current Price x (Trailing PE/Forward PE).

b. Apple’s 2019 EPS ranges from a low of $9.7 to a high of $14. Then you can conduct scenario analysis with different EPS estimates and different P/E multiples.

How do i use this information to calculte Apple stocks target price?

Reference no: EM131911834

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