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Use the price multiples to value JBH. a) Select four comparable companies for JBH. Explain...

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Accounting

Use the price multiples to value JBH.

a) Select four comparable companies for JBH. Explain why you choose those companies as comparable companies for JBH. What is the similarity between the comparable companies and JBH?

b) Calculate Earnings per Share (Actual) for the comparable companies (use the most recent financial statement).

c) Calculate Price to Earnings (Actual) and Price to Earnings (FY1) ratios for the comparable companies. Please use Median EPS of analyst forecasts under Analyst Forecasts link of DatAnalysis Premium in calculating Price to Earnings (FY1). Also, clearly mention the closing price and date of collecting this data.

d) Apply the price multiples to value JBH, using both Price to Earnings (Actual) and Price to Earnings (FY1) ratios. Note that you have calculated EPS (Actual) and EPS (FY1) for JBH.

e) Assume that target price for JBH is about $38-40. If your share value estimate using the price multiples valuation is far more or less than this range, explain what causes the difference.

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