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for this question please use : stock symbol: CSCO (Cisco Systems) pt 1-To find a company's...

for this question please use : stock symbol: CSCO (Cisco Systems)

pt 1-To find a company's P/E ratio, use www.morningstar.com , enter the desired stock symbol and request a basic quote. Once you have the basic quote, the P/E ratio is listed on a front page under Key Stat.

Compare the P/E ratio of your company with the industry average. Is there a difference between these two numbers? Is the stock overvalued, undervalued, or properly valued? Why? In accordance with your findings, is it reasonable to buy the stock? Please explain your answers.

pt 2-To estimate the risk of the stock we can use beta. Beta is listed under Trading Information – Stock Price History. What is the beta listed for the company? What does it mean? Will it change your decision in question #1 to buy the stock or not? Please explain your answers.

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