Intrinsic value of Damai Bhd common stock

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Reference no: EM133227510

Damai Bhd's expected earnings after taxes is RM300 million. The current market price of its common stock is RM5.00 per share. At present the company has 500 million shares outstanding and a PE ratio of 10.

1. Calculate the intrinsic value of Damai Bhd's common stock.

2. Would you buy the share at its current price? Why?

Reference no: EM133227510

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