Exercise 1&2 - Explain what are the pros and cons
Question # 00846263
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Updated on: 09/26/2023 04:07 AM Due on: 09/26/2023
Exercise 1: Theoretical question
Explain what are the pros and cons of the comparable/multiples valuation of the stocks? What are the most popular multiplicators for stock valuation?
Exercise 2: Practical valuation using P/E ratio.
Pick a stock of the publicly traded US-based company of your choice. What is the industry of the company? Use average industry P/E ratio and EPS (earnings per share) of the company to define the “fair” price of the stock.
Hint: you might find this data useful:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html
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Solution: Exercise 1&2 - Explain what are the pros and cons