1. A business valuation gives an economic value to a business. After looking at the Valuation tab (i.e., P/E, P/B, P/S, and Price to Cash Flow) in Morningstar.com and any other helpful material, does your chosen company appear to be more valuable than its closest competitor? What can you glean from the historical valuation data?
2. Liquidity ratios are financial ratios that measure a companys ability to repay both short- and long-term obligations. After looking at the Financial Health information in Morningstar.com (i.e., current ratio, quick ratio, financial leverage, and D/E ratio), how does your chosen company compare to its closest competitor? What information can you infer from these liquidity ratios?
3. Which of the two companies is the better run company?