Description
EVALUATION OF THE P/E RATIO
Step 1: Read the articles. These articles contain examples of evaluating P/E ratio. You will be using these examples to answer the questions listed at the bottom of the topic description.
- 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-co-201613354.html - 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-ratio-144611055.html - 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-asx-074409705.html
Step 2:
You must use the company assigned to you for the project. – Ross Stores Inc., (ROST)
Your assignment:
Please also note that your answers should be written in your own words. Don’t use quotes from the articles.
-Use Morningstar or Marketwatch, and enter the desired stock symbol to get to the company’s front page. Find the P/E ratio listed on the company’s page or calculate it.
-Compare the P/E ratio of your company with the industry average or with major competitors.
-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?
