Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Yizhou$489.18
Visitor$482.43
Visitor$370.00
allen$340.00
Visitor$300.00
Donnal$190.00
Visitor$150.00
Visitor$130.00
Visitor$119.09
Visitor$110.00
Mahmood$109.43
Visitor$100.00
Visitor$70.00
Visitor$60.00
Visitor$60.00
Visitor$50.00
Visitor$50.00
Visitor$42.65
Visitor$40.09
 

Question 537  PE ratio, Multiples valuation, no explanation

Estimate the French bank Societe Generale's share price using a backward-looking price earnings (PE) multiples approach with the following assumptions and figures only. Note that EUR is the euro, the European monetary union's currency.

  • The 4 major European banks Credit Agricole (ACA), Deutsche Bank AG (DBK), UniCredit (UCG) and Banco Santander (SAN) are comparable companies to Societe Generale (GLE);
  • Societe Generale's (GLE's) historical earnings per share (EPS) is EUR 2.92;
  • ACA's backward-looking PE ratio is 16.29 and historical EPS is EUR 0.84;
  • DBK's backward-looking PE ratio is 25.01 and historical EPS is EUR 1.26;
  • SAN's backward-looking PE ratio is 14.71 and historical EPS is EUR 0.47;
  • UCG's backward-looking PE ratio is 15.78 and historical EPS is EUR 0.40;

Note: Figures sourced from Google Finance on 27 March 2015.




Copyright © 2014 Keith Woodward