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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Help on valuations
Hi
I know this is very short notice, but I am struggling on Business Valuations.
I have done practice questions but I keep hitting a road blocks when I am required to do a PE valuation, but there isn’t a PE ratio given.
I also struggle with FCFE, just doing the calculation for the free cash flow is a little hard. Also what should I do if there is no growth rate.
Would greatly appreciate any tips / pointers
regards
Share price/EPS should give you your PE ratio. Growth (g) rate can be calculated using retention rate (b) x rate of return to equity (r) or determined from extrapolation
both comments are wrong. two data has been given in the question. maybe you miss them.