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Dartig Co question when the examiner tells to value share price using P/E ratio we use P/e ratio x EPS after including the growth rate to the EPS.
in another question KFP co when the question says value the NGN co on basis of P/e ratio we use P/e ratio of Buying compnay KFP co and earnings of NGN….but there its stated that NGN’s earning grows by 4.5%…….but in solution they didn’t grow their earnings and just multiplied p/e ratio of KFP co with current earning of NGN.
Can u please say at which time we should consider growing the earnings to calculate the value as per P/E ratio.
ok i got it sir……in dartig co the question said what will be the value as per p/e ratio following the business proposal so we included the growth rate. am i right. unless we only use current eps x p/e = to get value
another question is in dividend yield is it always calculated at share price at start of the year or current ex div share price
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