Two Part Question: Walmart is the company Type in your selected company’s name in the Quote...
Two Part Question: Walmart is the company
Type in your selected company’s name in the Quote
Search box, and select your company's stock symbol. Jot down the
current stock price.
Select the Analysis tab, and find the Analyst
Recommendation box. Jot down the stock’s Earnings Per Share (EPS)
Estimate.
Select the Price Ratios tab, and jot down the current
Price to Earnings Ratio (P/E) for the industry (not the
company).
Using the PE valuation model to determine the right
price for this stock, multiply the industry average P/E ratio
by the stock’s EPS to estimate the intrinsic price of the
stock.
Answer the following questions:
Is this stock overvalued or undervalued when compared
to the current stock price?
What are the analysts’ recommendations for this stock (buy, sell, or hold)?
Do you agree with them? Would you consider purchasing
this stock? Why?
Homework Answers
| EPS 2018 | 3.28 |
| P/E ratio of the industry | 46.3 |
| Intrinsic price of the stock | $ 151.86 |
| Share Price of Walmart | $ 93.15 |
From the above table, we have seen that the price of the stock is under priced by $58.71 (151.86 - 93.15). So the stock is under priced so it is suggested to buy the stock.
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Two Part Question: Walmart is the company
Type in your selected company’s name in the Quote...
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