a. Find three comparable (peer) firms from the same industry of your recommended firm. b. Go to Yahoo Finance (https://finance.yahoo.com) and enter the name(s) of your recommended firm and its comparable firms in the search box. From the main page for the firm, gather the following information, and tabulate the following numbers in your report. The current stock price. The earnings per share (EPS) The P/E (price-to-earnings ratio/multiple) c. You are going to estimate the value of your recommended stock by using "comparables" approach. This approach is similar to the valuation approach we see in the real estate market. If your neighbor's home just sold for $300,000 ($100 per square foot) and it has similar size, number of bedrooms/bathrooms, and amenity to your home. Your house, being a bit larger with 3500 square feet, is probably worth $100 x 3500 = $ 350,000. In the stock market, we are going to assume that comparable firms will have similar multiples. We are going to use the most common multiple, the price-to-earnings (P/E) multiple (or P/E ratio), and calculate an estimate of the company's stock value using the following formula. Estimated Stock Value (recommended firm)= EPS (recommended firm) x average P/E ratio of three comparable firms 3. Compare your estimated stock value to the actual stock price. What recommendations can you make as to whether your friends should buy or sell the stock based on your value estimate. If you would like to provide value estimates based on other models, please explain the calculation process clearly.