Brooklyn College Stock Valuation Worksheet

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Please see the word doc with the assignment and excel doc with the document to input figures and complete assignment.

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Industry of your target company
Sector of your target company
Company Name
Target Company
Company Name
Comparable Company 1
Comparable Company 2
Comparable Company 3
Comparable Company 4
Comparable Company 5
*Comparable Company 6
*Comparable Company 7
*optional
Average P/E
Median P/E
Market Capitalization (# of shares outstanding * stock price)
Forward EPS (estimated for next year)
Market Capitalization (# of shares outstanding * stock price)
P/E
Target Price (Average P/E)
Target Price (Median P/E)
Bonus (2 points) Assignment – Price Estimation Using P/E Ratio
1. Select your target company
2. Find 5-8 comparable companies
a. Go to Yahoo Finance – Equity screener: https://finance.yahoo.com/screener
b. Select “Create New Screener”: set your industry & sector
c. Get the list of firms and select your comparable companies
i. Sometimes you will see multiple tickers for the same firm, be careful not to use
the OTC trading price
ii. You want to use the prices from the American Stock Exchange (AMEX), the New
York Stock Exchange (NYSE) and the National Association of Securities Dealers
(NASDAQ)
3. Using the comparable companies, calculate the average P/E ratio and the median P/E ratio
a. Use =AVERAGE() in EXCEL to find average P/E
b. Use =MEDIAN() in EXCEL to find median P/E
4. Find the P/E estimated price of your target company
a. Estimated price (using average P/E) = EPS of your target firm * average P/E
b. Estimated price (using median P/E) = EPS of your target firm * median P/E

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Tags:
business

economics

stock valuation

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