EVALUATION OF P/E RATIO
These articles contain examples of evaluating P/E ratio. These examples
will help to answer the questions listed at the bottom of the topic
description.
1. Does Chicago Rivet & Machine Co’s (CVR) PE Ratio Signal A
Buying Opportunity? by Kelly Murphy, Simply – Wall St. October
5, 2017
https://finance.yahoo.com/news/does-chicago-rivet-machine-co201613354.html
2. Is Cynergistek Inc’s (CTEK) PE Ratio A Signal To Buy For
Investors? by Mary Ramos Simply, Wall St. October 5, 2017
https://finance.yahoo.com/news/cynergistek-inc-ctek-pe-ratio144611055.html
3. Does Katana Capital Limited’s (ASX:KAT) PE Ratio Signal A Selling
Opportunity? by Kyle Sanford , Simply Wall St. October 5, 2017
https://finance.yahoo.com/news/does-katana-capital-limited-asx074409705.html
Step 2:
Use Walmart, Inc. as the company for this post. Amazon will be the
competitor.
This question will be using P/E ratio.
Use Morningstar or Marketwatch, enter the desired stock symbol to get
to the company’s front page. Find P/E ratio is listed on the company’s
page (Walmart) or calculate it.
Compare the P/E ratio of your company (Walmart) with the industry
average or with major competitors (Amazon). Is there a difference
between these numbers? Is the stock overvalued, undervalued, or
properly valued? Why? In accordance with your findings, is it
reasonable to buy the stock? Please explain your answers.
Reflection –also include a paragraph reflecting on specifically what was
learned from the task and how it could this be applied in the workplace.
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