Question: Exercise 1: Valuation by comparables You are valuing a target firm using the method of comparables. Using the comparable firms P/E ratio, you get a

Exercise 1: Valuation by comparables You are valuing a target firm using the method of comparables. Using the comparable firms P/E ratio, you get a value of 100; using the similar firms P/B ratio, the estimate is a value of 110. a. What is your estimate of the value of the target firm? b. If the market price of the target is 102, would you invest in this stock? Explain (max page) Exercise

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