# Fin250 Investment P/E Ratio Week 7 Discussion

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### Question Description

I have completed most of the data, I need everything in red (the math & comments) completed. Please finish the math for each scenario based on the information I have already started.

I have labeled my stock as “choice,” the competitor stock as “peer,” the industry information as “industry.”

Comment on each “choice and peer” 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?

**The comment does not need to be long and drawn out, just answer the questions above**.

I have attached the word doc with what I have done and what needs to be finished.

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School: Duke University

Buddy, I have uploaded the complete paper 5 hours before deadline to allow you to review it early enough. If you have any question, let me know.

I have completed most of the data, I need everything in red (the math & comments)
completed. Please finish the math for each scenario based on the information I have
I have labeled my stock as “choice,” the competitor stock as “peer,” the industry
information as “industry.”
Comment on each “choice and peer” 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 pe er and
the industry as a whole? Why?
Choice: Netflix Inc. (NMS: NFLX) | Industry: Videotape & disc rental
P/E Ratio = 130.16
Netflix stock price on 10/16/18 closed at \$346.40. Seven weekdays earlier, on 10/08/18, it closed
at \$ 349.10. If I had bought 100 shares of Netflix stock on 10/08/18 at \$349.10 and sold them on
10/16/18 at \$346.40, I would have earned \$270 before taxes, which is 0.773% rate of return. The
calculation is (\$349.10 – \$346.40) / \$349.10 x 100 = 0.773%. Netflix’s stock priced closed on
10/16/15 at \$98.99. The three–year rate of return is 249.93%. Netflix Inc. stock has realized an
immense growth over time which indicates how the company has grown to be among the bestperforming stocks. The Netflix Inc. stock is lucrative to invest in since the company has growth
characteristic and hence more value can be realized over time. The stock is correctly valued.
Peer: Disney (Walt) Co. (NYS: DIS) | Industry: Cable & other pay-tv services
P/E Ratio = 16.245
Disney stock price on 10/16/18 closed at \$116.19. Seven weekdays earlier, on 10/08/18, it closed
at \$116.02. If I had bought 100 shares of D...

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Anonymous
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