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6 January, 11:07

You notice that Coca-Cola has a stock price of $ 41.42 and EPS of $ 1.74. Its competitor PepsiCo has EPS of $ 4.04. But, Jones Soda, a small batch Seattle-based soda producer has a P/E ratio of 33.9. Based on this information, what is one estimate of the value of a share of PepsiCo stock?

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  1. 6 January, 11:20
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    The estimate value of share of PepsiCo stock is $96.152

    Explanation:

    Given,

    Stock Price of Coca - Cola (MPS which is Market Price per share) is $41.42

    EPS (Earnings Per Share) is $1.74

    Putting the values in the P/E ratio, for computing the P/E ratio as:

    P/E ratio = MPS / EPS

    = $41.42 / $1.74

    = 23.80

    Jones Soda P/E ratio is 33.9

    PepsiCo stock EPS is $4.04

    Computing the estimate value of share of PepsiCo stock is as:

    Value of share pepsico stock = EPS * P / E ratio

    = $4.04 * 23.80

    = $96.152
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Home » Business » You notice that Coca-Cola has a stock price of $ 41.42 and EPS of $ 1.74. Its competitor PepsiCo has EPS of $ 4.04. But, Jones Soda, a small batch Seattle-based soda producer has a P/E ratio of 33.9.
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