Graded Discussion Week 5
EVALUATION OF P/E RATIO
Step 1: Read the articles. These articles contain examples of evaluating P/E ratio. You will be using these example to answer the questions listed at the bottom of the topic description.
https://finance.yahoo.com/news/does-chicago-rivet-machine-co-201613354.html
https://finance.yahoo.com/news/cynergistek-inc-ctek-pe-ratio-144611055.html
https://finance.yahoo.com/news/does-katana-capital-limited-asx-074409705.html
Your assignment:
Please also note that your answers should be written in your own words. Don’t use quotes from the articles.
You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.
For this question we will be using P/E ratio.
To find any company’s P/E ratio, use www.morningstar.com , enter the desired stock symbol to get to the company’s front page. The P/E ratio is listed on the company’s front page.
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? Please explain your answers.
Reflection – please write a paragraph in the initial response in your own words reflecting on specifically what you learned from the assignment.