employ relative valuation methods to value any ONE of the given stocks using the data provided in the Assignment Data file. Assume 5% as the risk-free rate and no dividend. Determine whether to go LONG or SHORT the chosen stock with a capital of $500,000. Assessment criteria: correct employment of relative valuation methodology, cohesive arguments to long/short the stock giving due regard to both specific stock and broader market outlook.

	Stock ratios
	Price / EPS	Enterprise Value to EBIT	Price To Book Value Per Share	Return On Equity %	Return On Assets %
WDS.AX	13.09	4.95	1.23	21.01	7.87
STO.AX	10.91	5.42	1.08	17.30	6.47

Please provide an explanation of 'WDS.AX' and conduct a comparison between 'WDS.AX' and 'STO.AX' since they appear to be related companies in a similar industry.

Could you explain more about WDS for example how inflation effect on WDS? if price increase will the share market of WDS will affect on it or not?

explain it to at least 700 words please