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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › value of the company
P4 June 13 2b
hi john
in the above question the examiner has simple used the pe ratio of strand and multiplied that by its after tax earning to get its current value
however alternatively this can also be done by multiplying strands share price by its shares to get its value. however this method gives slightly different answer.
is it OK to use this method still?
Yes, it is OK 🙂
