Examine the data below for all 4 companies and indicate whether the Gilbert\'s f

Question

Examine the data below for all 4 companies and indicate whether the Gilbert's firm's P/E ratio apperar to be appropriate in light of other firms in the industry.
Gilbert Enterprise
Annual growth in EPS 12.0%
Return on Stockholder's Equity 18.0%
Return on Total Assets 12.1%
Debt to Total Assets 33.0%
Market Value $35.25
Book Value $16.40
Replacement Value $43.50
Divident Yield 3.40%
P/E ratio 16.80

Reliance Company
Annual growth in EPS 8.0%
Return on Stockholder's Equity 25.3%
Return on Total Assets 8.1%
Debt to Total Assets 68.0%
Market Value $70.50
Book Value $50.25
Replacement Value $68.75
Divident Yield 2.18%
P/E ratio 24.10

Standard Company
Annual growth in EPS 7.0%
Return on Stockholder's Equity 14.0%
Return on Total Assets 10.5%
Debt to Total Assets 25.0%
Market Value $24.25
Book Value $19.50
Replacement Value $26.00
Divident Yield 5.26%
P/E ratio 14.20

Allied Company
Annual growth in EPS 9.0%
Return on Stockholder's Equity 15.3%
Return on Total Assets 9.8%
Debt to Total Assets 36.0%
Market Value $46.75
Book Value $50.75
Replacement Value $37.50
Divident Yield 3.12%
P/E ratio 18.10

Explanation / Answer

It should be higher given the comparative data.

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