I need some help

1)What is the difference between Earnings per Share and P/E ratio?What do they measure?

Here is some recent financial data for a number of companies (as of April 2019).Net Income and # of shares outstanding are in thousands.

Annual Net Income# shares outstanding Stock price per share

L Brands (LB) $983,000277,200$25.18

Lululemon (LULU) $302,570122,680$172.27

Louis Vuitton (MC.PA) Paris exchange $5,130,000502,480$352.15

Steven Madden (SHOO) $126,46058,460$33.22

Destination Maternity (DEST) -$14,00014,350$2.13

American Clothing Company (PVH) $746,40075,150$131.72

2). For each of the above companies:

Compute a) earnings per share and b) the P/E ratio

*Answers should be calculated in an Excel workbook and use Excel formulas to do calculations.I need to see all work, and the formulas will be "the work".Label the results to know which company is which.

3)As you answer these questions keep in mind that stock value (price) can be thought of as a function of profit, growth opportunities and risk.Answers should identify which of those 3 factors seems prominent in the determination of the price of a stock.When I ask "how can you tell" I am looking for you to identify a piece of data on which you have based your answer.All of these can be answered in a few lines.

• a)Look at Louis Vuitton and Steven Madden.What is it that makes Louis Vuitton stock sell at over $352 a share while SHOO sells for over $33 a share?Is it profit?Growth potential?Risk?How can you tell?
• b)Look at L Brands and LULU.Is it profit, growth potential or risk that is the main reason why a share of L Brands stock costs about $25 while LULU stock is worth $172 a share?How can you tell?
• c) Which stock should you avoid at all costs? Why?
• d) If you were given a choice of investing your money into one of the companies above, who would it be?Why did you choose that company? Growth, Earnings, both?