Question

A company generated revenues of $250 million during the last twelve months, with an operating margin...

A company generated revenues of $250 million during the last twelve months, with an operating margin of 37.8% and net margin of 22.2%. Its current market capitalization (equity value) is $543 million and it has 12 million shares outstanding. What's its trailing PE ratio? Round to one decimal place.

Homework Answers

Answer #1
Net Income = net margin * sales
=$250*22.2%
=55.5 million
Market price per share = $543 million /12 million shares
=$45.25 per share
Earning Per Shares = Net Income/ Average Number Of Shares Outstanding
= $55.5 million /12 million
= $ 4.63
Price-earning ratio =Price Per Share/ Earning Per Share
= $45.25/4.63
= 9.8 times
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