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Estimate the price of another firm

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Reference no: EM131160968

You have the following information on Pfizer (PFE) and Johnson & Johnson (JNJ):PFE: P-E (which is Price/EPS) = 28.05 JNJ: EPS = 5.49

  1. Using Pfizer as a comparable, estimate JNJ's price: ______________
  2. The current price of JNJ is about $115.48 per share. How does your estimate compare to the current price (high, low or about the same)? ___________________________
  3. What is one problem with using a comparable (such as Pfizer) to estimate the price of another firm (such as JNJ)?

Reference no: EM131160968

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