Estimate for the justified price of puppis enterprises

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Reference no: EM131537414

1. As a portfolio manager for a sovereign wealth fund, one of your current tasks is to evaluate the common stock of a company called Puppis Enterprises, a manufacturer of neurotransmitter components. Here are the particulars of both Puppis and the three nearest comparables you can find in the company's industry and sector.

Company

Puppis Enterprises

Carina Co.  

Pyxis, Inc.

Volans

Current market price

N/A

$10.50

$29.50

$82.00

Current book value

$100,000,000

$62,500,000

$150,000,000

$375,000,000

Shares outstanding

250,000,000

110,000,000

50,000,000

75,000,000

From these data, and from your use of the method of comparables, the best estimate for the justified price of Puppis Enterprises is:

a.$5.96

b. $6.59

c. $6.88

Reference no: EM131537414

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