Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the “$” sign in your response.) 

  Year 2008 2009 2010 2011 2012 2013  

Price $ 87.90 $ 93.80 $ 92.50 $ 90.00 $ 111.50 $ 126.90   

EPS 4.64 5.35 6.15 6.85 7.90 8.90   

CFPS 8.17 8.96 9.25 11.02 12.34 13.46   

SPS 69.00 74.00 73.40 76.90 88.10 96.10  

    Using P/E ratio $   Using P/CFPS ratio $   Using P/S ratio $ 

Using P/E ratioP/E ratio= Price / EPS2008: P/E = 87.90/4.64= 18.902009: P/E = 93.80/5.35 = 5.3 =17.6982010: P/E = 92.50/6.15= 15.042011: P/E = 90/6.85= 5.3 =13.142012 P/E = 111.5/7.90= 14.11…

 

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