Description
- Online Research: using Yahoo Finance, look up 4 companies in different industries (see Template 1 posted in Canvas “Files” for assigned companies) and create a table comparing their trailing PE ratio, their average Earnings growth rate over the past 5 years, their forecasted EPS growth rate for the next 5 years, and their forecasted growth rate in stock price between now and the 1 year analyst estimate. Answer thought questions on Template.
- Online Research: using Yahoo Finance, look up 4 companies in the same industry (see Template 2 posted in Canvas “Files” for assigned companies) and create a table comparing their ratios for Price/Earnings, Price/EBIT, Price/Revenues, and Price/Book Value. (REMEMBER you must use either per-share OR total company values in both numerator and denominator to calculate ratios: you can’t compare a per-share price with total-company earnings, for example, or you will get a bizarre number.) Answer the thought questions on the Template and follow the instructions to calculate the value of a “new” company in this industry.
Deliverable: 2 Completed Templates
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Explanation & Answer
Hi please find the attached templates. Do let me know should you need further clarifications.
BUS 170 TEMPLATE FOR STOCK VALUATION ASSIGNMENT
STUDENT NAME _______________________________
PART 1: COMPARING COMPANIES IN DIFFERENT INDUSTRIES
COMPANY:
Industry:
Latest Trailing PE Ratio
Amazon
Facebook
Jet Blue
Sears
Online Retail
175.92
Social Network
43.01
Airline
11.52
Bricks & Mortar Retail
-0.52
Trailing Earnings
Growth Rate (“past 5
years, per annum”)
Forward Earnings
Growth Rate (analysts’
Growth Est for “Next 5
Years per annum”)
Forecasted growth rate
in Stock Price (current
price vs analyst 1 year
estimate)
35.69%
70.10%
59.05%
-10.95%
28.32%
23.77%
4.62%
-163.90%
Current 937.53
Est 1,085.42
Current 150.85
Est 162.72
Current 21.54
Est 25.54
Current 10.38
Est 4.00
=15.76%
=7.87%
...