Question: I need help 1)What is the difference between Earnings per Share and P/E ratio?What do they measure? Here is some recent financial data for a

I need help

1)What is the difference between Earnings per Share and P/E ratio?What do they measure?

Here is some recent financial data for a number of companies (as of April 2019).Net Income and # of shares outstanding are in thousands.

Annual Net Income# shares outstanding Stock price per share

L Brands (LB) $983,000277,200 $25.18

Lululemon (LULU) $302,570122,680$172.27

Louis Vuitton (MC.PA) Paris exchange $5,130,000502,480$352.15

Steven Madden (SHOO) $126,46058,460$33.22

Destination Maternity (DEST) -$14,00014,350$2.13

American Clothing Company (PVH) $746,40075,150$131.72

2)For each of the above companies:

compute a) earnings per share and b) the P/E ratio.

Answer should be calculated in an Excel workbook and should use Excel formulas for calculations.I need to see all work, and the formulas will be "the work".Label the results so I know which company is which.

3)As you answer these questions keep in mind that stock value (price) can be thought of as a function of profit, growth opportunities and risk.Answers should identify which of those 3 factors seems prominent in the determination of the price of a stock.When I ask "how can you tell" I am looking for you to identify a piece of data on which you have based your answer.All of these can be answered in a few lines.

a)Look at Louis Vuitton and Steven Madden.What is it that makes Louis Vuitton stock sell at over $352 a share while SHOO sells for over $33 a share?Is it profit?Growth potential?Risk?How can you tell?
b)Look at L Brands and LULU.Is it profit, growth potential or risk that is the main reason why a share of L Brands stock costs about $25 while LULU stock is worth $172 a share?How can you tell?
c)Which stock should you avoid at all costs? Why?
d)If you were given a choice of investing your money into one of the companies above, who would it be?Why did you choose that company? Growth, Earnings, both?

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