An analyst is looking at two comparable companies. Company A has a lower price/earnings (P/E) ratio...

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An analyst is looking at two comparable companies. Company A has a lower price/earnings (P/E) ratio than Company B, and the conclusion that has been suggested is that Company A is undervalued. As part of examining this conclusion, the analyst decides to explore the question: What would the company's P/E look like if total comprehensive income per share-rather than net income per share-were used as the relevant metric? Price EPS P/E ratio Other comprehensive income (loss) $ million Shares (million) Company A Company B $35 $30 $1,6 $0,90 21,9x ($16,272) 22,6 33,3x ($1,757) 25,1 An analyst is looking at two comparable companies. Company A has a lower price/earnings (P/E) ratio than Company B, and the conclusion that has been suggested is that Company A is undervalued. As part of examining this conclusion, the analyst decides to explore the question: What would the company's P/E look like if total comprehensive income per share-rather than net income per share-were used as the relevant metric? Price EPS P/E ratio Other comprehensive income (loss) $ million Shares (million) Company A Company B $35 $30 $1,6 $0,90 21,9x ($16,272) 22,6 33,3x ($1,757) 25,1

Answer rating: 100% (QA)

Based on the information provided Company As price per share is 35 Company As net income per share E... View the full answer