Question
Within the same industry, I see that ExxonMobil (XOM) has a P/E ratio of 23.2 and Chevron (CVX) has a P/E ratio of 28.5. Therefore,
"Within the same industry, I see that ExxonMobil (XOM) has a P/E ratio of 23.2 and Chevron (CVX) has a P/E ratio of 28.5. Therefore, XOM is more likely to be an undervalued stock."
True.
False.
Cannot reach that conclusion using only that information.
PS: the answer is NOT True
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Price theory and applications
Authors: Steven E landsburg
8th edition
538746459, 1133008321, 780538746458, 9781133008323, 978-0538746458
