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Math Help - quick estimation of stock value

  1. #1
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    Exclamation quick estimation of stock value

    if i only know the p/e ratio for a similar company and the shares outstanding in mine as well as earnings after taxes how do i estimate my stock price?

    would i just take my earnings/shares outstanding and then multiply by the p/e ratio?

    i'm pretty sure that's right anyone able to confirm?
    Last edited by weskaiser; April 16th 2010 at 07:38 PM.
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  2. #2
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    Quote Originally Posted by weskaiser View Post
    if i only know the p/e ratio for a similar company and the shares outstanding in mine as well as earnings after taxes how do i estimate my stock price?

    would i just take my earnings/shares outstanding and then multiply by the p/e ratio?

    i'm pretty sure that's right anyone able to confirm?
    Yes, that is correct- earnings per share times p/e gives the price of one share.
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