Equity Shares Valuation Illustration 18


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The after tax profits of SCOrE Ltd. are expected to be  18 crores. The company does not have any preference shares outstanding, whereas the equity capital is  90 crores divided into shares of  10 each. The company is operating is an industry whose P/E multiple is 10. Using P/E ratio model, determine the price at which the stock should be purchased.

 


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