Define estimate of this company''s price per share of stock

Reference no: EM131318420

If the average P/E multiple for comparables is 15 and the company you want to value has expected earnings per share of $2, what is the estimate of this company's price per share of stock? Why might you prefer to use a measure of cash flow generating ability such as earnings instead of sales in relative valuation?

Reference no: EM131318420

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