这个模拟题是不是出错了？ EPS 怎么会 = ROE X BOOKvalue
An analyst gathered the following information for a company whose common stock is currently priced at $40 per share:
2005
2006
2007
2008
2009
Earnings per share ($)
1.16
0.62
1.28
1.60
(1.30)
Book value per share ($)
8.48
8.92
16.04
19.28
16.30
Return on equity (ROE)
14%
7%
8%
8%
A severe cyclical contraction occurred in 2009 for a major segment of the company’s operations. What is the most accurate estimate of the stock's P/E ratio assuming the analyst uses the average ROE method for normalizing the firm's EPS?
A. 26.5
B. 32.8
C. 34.2
Answer: A
“Introduction to Price Multiples,” John D. Stowe, CFA, Thomas R. Robinson, CFA, Jerald E. Pinto, CFA, and Dennis W. McLeavey, CFA
2010 Modular Level I, Vol. 5, pp. 200-202
Study Session 14-59-b
Calculate and interpret P/E, P/BV, P/S, and P/CF.
To normalize the EPS, multiply the current book value per share with the average ROE for the most recent full cycle. Normalized P/E = current market price / normalized EPS.
Average ROE = (14 + 7 + 8 + 8)/4 = 9.25;
Normalized EPS = Normalized ROE x 2009 BVPS = 0.0925 × 16.30 = $1.51
Normalized P/E = $40/1.51 = 26.5.
