Select two publicly traded companies from two different industries and discuss how you would value the stock of those companies. Are your selected stocks overpriced or underpriced by the market?
We have selected Apple Inc. in manufacturing industry and Amazon.com Inc. in service industry :
Basis of valuation is PE and Formula use is Price = PE * EPS
Apple Inc. | |
Past PE | 14.92 |
EPS | 12.01 |
expected price | 179.1892 |
current price | 178.3 |
valuation | Fairly-priced |
Amazon.com Inc. | |
Past PE | 75.96 |
EPS | 20.14 |
expected price | 1529.8344 |
current price | 1816.32 |
valuation | Over-priced |
Select two publicly traded companies from two different industries and discuss how you would value the stock of those co...
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An investor has an opportunity to buy stock in two publicly traded companies: Avvoltoio Airlines and Unctuous Energy. If the investor puts her money in a stock, and the company does well, she earns a return of $14. If the company does not do well, she earns $2. Avvoltoio tends to do well when oil prices are low; Unctuous tends to do well when oil prices are high. The returns are therefore negatively correlated. Returns have the following probability distribution....
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find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what you have found and provide a couple of sentences of explanation as to what those ratios tell you about the firms. Finally, provide some analysis of which firm you think would be the better investment, based on this information.
find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what you have found and provide a couple of sentences of explanation as to what those ratios tell you about the firms. Finally, provide some analysis of which firm you think would be the better investment, based on this information.
. An investor has an opportunity to buy stock in two publicly traded companies: Avvoltoio Airlines and Unctuous Energy. If the investor puts her money in a stock, and the company does well, she earns a return of S14. If the company does not do well, she earns S2. Avvoltoio tends to do well when oil prices are low; Unctuous tends to do well when oil prices are high. The returns are therefore negatively correlated. Returns have the following probability...