Now choose one of your firms and look up the other firms in the same industry. Perform
Question:
Now choose one of your firms and look up the other firms in the same industry. Perform a
“Valuation by Comparables” analysis by looking at the price/earnings, price/book value, price/sales, and price/cash flow ratios of the firms relative to each other and to the industry average. Which of the firms seem to be overvalued? Which seem to be undervalued? Can you think of reasons for any apparent mispricing?
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Related Book For
ISE Investments
ISBN: 9781260571158
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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