You have identified three competitors for HAL. Relevant data for HAL and these competitors are shown in the following table:
| Company | Share Price | Net Income | Outstanding Shares |
| Name | ($) | ($ million) | (in millions) |
| HAL | – | 12 | 15 |
| IBM | 20 | 20 | 20 |
| ORC | 30 | 6 | 5 |
| CSC | 12 | 6 | 15 |
Applying relative valuation methodology and using the average P/E ratio of all three competitors the estimate of HAL’s stock price should be:
