You are working on a project to value an independent securities brokerage firm. You know the industry

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You are working on a project to value an independent securities brokerage firm. You know the industry had a significant decline in valuations during the 2007−2009 financial crisis. You decide to perform a time series analysis on three firms: E*TRADE Financial Corp. (NASDAQ: ETFC), The Charles Schwab Corporation (NASDAQ: SCHW), and TD Ameritrade Holding Corp. (NYSE: AMTD). Exhibit 12 presents information on these firms.

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Based only on the information in Exhibit 12, discuss the relative valuation of ETFC relative to the other two companies.

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Equity Asset Valuation

ISBN: 9781119850519

3rd Edition

Authors: Jerald E Pinto, CFA Institute

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