Beagle Beauties engages in the development manufacture and s

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2015. Also assume that the firm’s equity beta is 1.40, the risk-free rate is 2.10 percent, and the market risk premium is 6.2 percent.

What is the sum of the shares prices when you estimate the 2016 share price for Beagle Beauties using the P/E, P/CF, and P/S ratios?

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

Solution

using P/E share price = 13.14 * 5.3 = 69.642

using Cash flow = 9.55*6.75 = 64.4625

usinf Sales = 2.47 * 25.80 = 63.726

sum = 197.83