How does the valuation of your firm compare to that of the competitors based on the P/E ratio?
Why might this be the case?
How does your firm’s current price compare to the estimated price? Using the industry and sector P/Es, compare both for the TTM and estimated year-end:
Is it higher or lower?
Why might that be?
Provide one rational reason why.
Based on simple analysis, which of the two firms (your selected firm and its competitor) appears to be undervalued?
Why did you draw that conclusion?
What do you suspect is the reason?
