Do you believe your choice stock to be fairly priced

Assignment Help Finance Basics
Reference no: EM131231620

Discussion Board Question

Discussion: Select a Portfolio for Investment Based on P/E

Investors often use the price earnings, or P/E ratio, as a way to gauge the relative value of a stock in relation to its peers. It is the market price of a share of stock relative to its earnings per share. "The more positive investors feel about a stock's future prospects, or the less risk they feel the stock has, the higher the stock's P/E ratio" (Keown, 2013, p. 439).

Other investors view a low P/E as a ‘value,' meaning the price paid for the stock is less relative to the earnings generated by the firm itself.

Select four stocks of your choice that are diversified across four different sectors or industries. Research each stock using Mergent Online. Written instructions and a video found here: Mergent Online Instructions.

In your initial post, label your selected stock as "choice," the competitor stock as "peer," the industry information as "industry," and list the P/E ratio for each of these categories.

Comment on your findings. Based on the P/E ratio, do you believe your choice stock to be fairly priced, a ‘value,' or overpriced as compared to a peer and the industry as a whole? Why?

Reference no: EM131231620

Questions Cloud

About the what kind of contract : Lauren takes her daughter to the doctor for her checkup. The doctor performs the checkup. Lauren and her daughter leave the doctor's office. Lauren and the doctor never discuss payment for his services, so she is surprised when she receives a bill a ..
Write a report on banking related topic : An assignment consists of a written report on any current banking-related topic found in any current periodical, your written report cannot be longer than 2 pages.
Estimate the simple payback time for the solar hot water : estimate the simple payback time for the solar hot water heater. The temperature of the water in the main from which it is to be heated is 10°C.
Did socrates philosophical lifestyle have the potential : Did Socrates's philosophical lifestyle have the potential to "wake up" Athenians in a way that could have been useful to that society? Does the importance of being awoken in that way justify the extreme manner that Socrates chose to live and die?
Do you believe your choice stock to be fairly priced : Comment on your findings. Based on the P/E ratio, do you believe your choice stock to be fairly priced, a ‘value,' or overpriced as compared to a peer and the industry as a whole? Why?
Explain how this experience has influenced your ability : Describe how your perspective has evolved or changed through this course and how you believe it will continue to evolve after the course. Explain how this experience has influenced your ability to create positive social change beyond the term of th..
In what ways did martha stewarts control of the company : In what ways did Martha Stewart's control of the company impair its ability to respond to external challenges?- What changes in the makeup of the board would have improved governance?
What is the average actual power produced by a turbine : What is the average actual power produced by a turbine of this type at this wind speed? (Hint: Find Cp)Hint: Find the maximum power coefficient, Cp, based on the following equation for axial induction.
How might this impact communication praxis : How can you use the knowledge of context and communication in present or future intercultural interactions? How might this impact communication praxis?

Reviews

Write a Review

Finance Basics Questions & Answers

  Ejh has a beta of 12 csh has a beta of 06 and kms has a

ejh has a beta of 1.2 csh has a beta of 0.6 and kms has a beta of 1.0. if you put 25 of your money in ejh 25 in csh

  Both firms sell 10000 units of output at 250 per unit the

firm a has 10000 in assets entirely financed with equity. firm b also has 10000 in assets but these assets are financed

  What is the minimum number of billable hours each year

Your company has purchased a new excavator for $210,000. The track hoe can be billed out at $180.00 per hour, has an hourly operation cost of $104.00, and has a useful life of six years. At the end of six years the track hoe has a salvage value of $3..

  Create a table for the npv profile for this project

Create a table for the NPV profile for this project for discount rates ranging from 0% to 30%, in intervals of 5%. For which discount rates is the project attractive?

  The risk-free rate of interest with continuous compounding

1.Consider a 11 month forward contract on an asset that is expected to provide an income equal to1 % of the asset price once every 1 months. The risk-free rate of interest with continuous compounding is 9 % per annum. The initial asset price is $ ..

  Computation of receivables collection period and leverage

Computation of receivables collection period and leverage effect of the debt and What is times interest earned

  Your company is considering a new project that will require

your company is considering a new project that will require 1055000 of new equipment at the start of the project. the

  What is the common-size statement value of inventory

A firm has sales of $1,360, net income of $227, net fixed assets of $469, and current assets of $329. The firm has $95 in inventory. What is the common-size statement value of inventory?

  In an opinion poll it is assumed that an unknown proportion

in an opinion poll it is assumed that an unknown proportion p of the people are in favor of a proposed new law and a

  Financial research paper on amazon

Financial research paper on Amazon. The assignment is:  I am a Financial Manager I am looking for investments for my client. These investments must align with my client's investment goals. I choose Amazon for him/her to invest.  5 or 6 pages cover an..

  Estimating the future value of prize

The Florida lottery agrees to pay winner 271, 000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.08?

  Explain how risk affects corporate financial strategy

Explain how risk affects corporate financial strategy. Include the following: Business risk-Credit risk-Interest rate risk

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd