Question
Value Campbell Soup Shares using the Market to Book Multiple (P/B). Value the share to the nearest cent.
Ticker Company Industry Market Cap Trailing P/E P/B Dividend yield Debt/Eq Price MVIC / EBITDA CPB Campbell Soup Company Processed & Packaged Goods 12.73B 35.06 9.02 3.33% 7.01 42.2 GIS General Mills, Inc. Processed & Packaged Goods 27.43B 17.19 4.51 4.15% 2.58 47.2 16.68 K Kellogg Company Processed & Packaged Goods 25.55B 14.49 9.00 3.04% 3.2 73.9 14.40 MKC McCormick & Company, Inc. Processed & Packaged Goods 16.29B 31.26 5.48 1.65% 1.7 127 24.91 SJM The J. M. Smucker Company Processed & Packaged Goods 12.78B 22.88 1.64 2.97% 0.61 115 15.47 Book Value Equity (Millions) Campbell Soup Company 1,373.00 EPS Campbell Soup Company 0.86 DPS Campbell Soup Company 1.40 EBITDA (Millions) Campbell Soup Company 925.00 Market Value Liabilities (Millions) Campbell Soup Company 14,892.00 Shares Outstanding (Millions) Campbell Soup Company 300.65
Explanation / Answer
Book Value per share of Campbell=1373/300.65=4.566771994
Average P/B of idnustry=(4.51+9+5.48+1.64)/4=5.1575
Price of Campbell Share=5.1575*4.566771994=23.55312656
