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.
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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