Write a 2- to 3-page paper with the following items:
What is the P/E ratio of this company? How does the P/E ratio compare to other companies in this industry?
Based on the P/E ratio, do you think the company is overvalued or undervalued?
Find the company’s balance sheet. Calculate the book value of each share. This can be done by taking the
total assets and subtracting total liabilities. Then divide the number you get by the total number of outstanding
shares. Is the number you get higher or lower than the current price of the share? Based on what you’ve found,
would you say the stock is overvalued or undervalued?
Finally, do a search on what different analysts have to say about your company. Do they generally recommend
buying the stock or selling the stock? What reasons to they give for their assessment? Find at least three
analyst reports about this company.
Sample Solution
