The price earnings (P/E) ratio for BMI Berhad is 21, and the price to sales (P/S)...

 

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The price earnings (P/E) ratio for BMI Berhad is 21, and the price to sales (P/S) ratio is 5.2. The industry P/E ratio is 35 and the industry P/S ratio is 7.5. Discuss whether BMI Corporation is undervalued or overvalued or fairly valued. Then, should we use price earnings multiple in making investment decisions? Explain your reasoning. The price earnings (P/E) ratio for BMI Berhad is 21, and the price to sales (P/S) ratio is 5.2. The industry P/E ratio is 35 and the industry P/S ratio is 7.5. Discuss whether BMI Corporation is undervalued or overvalued or fairly valued. Then, should we use price earnings multiple in making investment decisions? Explain your reasoning.

Answer rating: 100% (QA)

The PE ratio is a measure of a companys current share price relative to its earnings per share A low... View the full answer