Question

# Given the information below for Seger Corporation, compute the expected share price at the end of...

Given the information below for Seger Corporation, compute the expected share price at the end of 2017 using price ratio analysis. Assume that the historical average growth rates will remain the same for 2017.

(Do not round intermediate calculations. Round your answers to 2 decimal places.)

 YEAR 2011 2012 2013 2014 2015 2016 PRICE \$78.90 \$84.80 \$83.50 \$81.00 \$102.50 \$117.90 EPS 4.39 5.10 5.90 6.60 7.15 8.15 CFPS 7.42 8.36 8.80 10.27 11.89 13.16 SPS 61.50 66.50 65.90 69.40 80.60 88.60
 SHARE PRICE USING P/E RATIO USING P/C/F RATIO USING P/S RATIO

Computation of share price for YEAR 2017:

 Particulars 2011 2012 2013 2014 2015 2016 Average \$ \$ \$ \$ \$ \$ \$ Share Price (P) 78.9 84.8 83.5 81 102.5 117.9 EPS 4.39 5.1 5.9 6.6 7.15 8.15 6.22 CFPS 7.42 8.36 8.8 10.27 11.89 13.16 9.98 SPS 61.5 66.5 65.9 69.4 80.6 88.6 72.08 P/E Ratio 17.97 16.63 14.15 12.27 14.34 14.47 14.97 P/CFPS 10.63 10.14 9.49 7.89 8.62 8.96 9.29 P/SPS 1.28 1.28 1.27 1.17 1.27 1.33 1.27 Price for 2017 Share Price 2017 USING P/E RATIO AVERAGE P/E X AVERAGE EPS = 14.97 X 6.22 93.05 USING P/CFPS RATIO AVERAGE P/CFPS X AVERAGE CFPS = 9.29 X 9.98 92.73 USING P/SPS RATIO AVERAGE P/SPS X AVERAGE SPS = 1.27 X 72.08 91.24