Hello,

I need a help with the following question. As a part of the assignment, I completed the table below for two companies. I calculated Market Value and Market-to-Book ratio for two companies. I needed to comment on the companies market to book ratios which I did below the table, but it seems very lacking of deeper analysis. Please, provide your analysis on Market- to-Book ratio indications for these two companies.

	Book value, which is total equity applicable to the stockholders of the company	Market value-show your calculation, which is Closing price times number of shares outstanding. If outstanding shares are not provided you will need to calculate outstanding shares=issued less treasury stock.	Market-to-Book ratio show your calculation which is market value/book value
J.C. Penney Company Inc.	$1,170	Closing price: $1.32 Outstanding shares: 316.1 million of shares MV=$1.32*316.1=417.252 million	Market-to-Book ratio: $417.252/$1,170=0.356
Kohls Corporation Inc.	$5,527	Closing price: $66.69. Common stock shares issued: 374 million. Treasury stock: 211 million. Outstanding shares=374-211=163. MV=$66.69*163=$10,870million	Market-to-Book ratio=$10,870/$5,527=1.967

My Comment: The calculation of J.C. Penneys Market Value (MV) indicates that the companys MV is significantly larger that its Book Value. However, Market -to- Book ratio of J.C. Penney is only 0.356 which indicates that the company is straggling. The low ratio of 0.356 indicated that the companys value is low. On the other hand, Kohls Market Value (MV) as twice bigger than its Book Value and Market -to- Book ratio is 1.967. This indicates that the company is performing well and their stock is a value.