Sankey Co has earnings per share of 325 The benchmark PE is

Sankey Co. has earnings per share of $3.25. The benchmark PE is 17.4 times. What stock price would you consider appropriate?

$20.65

$51.40

$56.55

$55.04

$53.54

Solution

Stock price:

= PE Ratio*EPS

= 17.4*$3.25

= $56.55

Hence, correct option is $56.55