What's the best guess for the share price in 1-2 years?
Investors fix targets for most stocks by estimating future earnings per share and then applying a price-to-earnings "multiple", also known as the P/E ratio. Companies with the most consistent earnings history or strongest growth prospects receive the highest P/E multiples. We calculate price targets for the current and next fiscal year by applying the stock's current multiple to the average professional analyst's estimate.
Valuation using WM Morrison 's current multiple (P/E):
What's the best guess for the stock if it were valued like its peers?
Investors often come to believe that a stock is undervalued or overvalued compared to other stocks in its industrial group. To calculate an alternate target price for the current and next fiscal year based on those beliefs, investors can apply the average P/E multiple for a company's industrial group to the average professional analyst's earnings estimate for the company in those periods.
Valuation using the industry's current multiple (P/E):