Question: You are an aspiring financial analyst tasked with evaluating two different investment opportunities, Investment Option X and Investment Option Y. You have been provided with

You are an aspiring financial analyst tasked with evaluating two different investment opportunities, Investment Option X and Investment Option Y. You have been provided with some key financial data for both options. Your goal is to critically assess these investment opportunities and decide which one appears more favorable based on the Price-to-Earnings (P/E) ratio.

Investment Option X: Company X is a well-established tech company. It has an Earnings per share (EPS) of $3.50. The current market price per share of Company X is $45.00. Investment Option Y: Company Y is a relatively new startup in the renewable energy sector. It has an Earnings per share (EPS) of $2.75. The current market price per share of Company Y is $62.50.

Questions: - Which investment option, X or Y, seems to have a lower P/E ratio? What does this suggest about the relative valuation of these companies?

- Consider the differences in the nature of the companies (established tech company vs. new startup in renewable energy). How might these differences influence your investment decision beyond just the P/E ratio?

- What other factors would you want to investigate or consider before making a final investment decision between these two options?

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