Determine company value according to the methods

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Reference no: EM131312512

Company X

E=20 (Next years annual earnings)

WACC=12%

g=5% (Analysts expected growth over next 5 years)

Industry

P/E=15 (ttm)

Determine the companys value according to the following methods.

Identify the methods.

a. Determine the value relative to the industry.

b. Determine the intrinsic value assuming a 5% growth rate for infinity.

Reference no: EM131312512

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