Using ROE, P/B ratio and P/E ratios, discuss the market's expectation on future performance of A...

 

Transcribed Image Text:

Using ROE, P/B ratio and P/E ratios, discuss the market's expectation on future performance of A and B relative to their current performance (current ROE/ profitability). Company A and B are in the same industry. ROE 5% 31% Company A B Price-to-book (P/B) ratio Price-to-earnings (P/E) ratio 1.2 7 7 21 Using ROE, P/B ratio and P/E ratios, discuss the market's expectation on future performance of A and B relative to their current performance (current ROE/ profitability). Company A and B are in the same industry. ROE 5% 31% Company A B Price-to-book (P/B) ratio Price-to-earnings (P/E) ratio 1.2 7 7 21

Answer rating: 100% (QA)

Market Expectations on Future Performance A vs B Based on the provided financial ratios ROE PB and PE the market seems to expect a difference in futur... View the full answer