Acquire Corp. has a business model based on making accretive acquisitions each and every year. The company has historically been successful in implementing its strategy. In fact, Acquire Corp’s earnings per share have grown each of the last five years at a 15 percent compounded rate. During the past year, Acquire Corp. acquired a services company with large net operating losses, representing a third leg to its business model. The other two business segments are engineering construction and mining. The purchase price was one-half the company’s current market value. Which of the following measures is the most appropriate technique to value Acquire Corp.
A．
| A. Price-to-trailing earnings ratio. |
B．
| B. Price-to-forward earnings ratio. |
C．
| C. Trailing sales-to-price ratio. |
