KNOWLEDGE CHECK Below is the EQRV screen for Morgan Stanley that you just created. Based on this information alone, would a portfolio manager consider Morgan Stanley cheap or expensive relative to its peers? Cheap because its blended forward P/E is higher than its peers Expensive because its blended forward P/E is higher than its peers Expensive because its blended forward P/E is lower than its peers Cheap because its blended forward P/E is lower than its peers Click to open/close chart MORGAN STANLEY Equity EQRV - Related Functions Menu Message * C: ? MS US $ 147.64 +0.35 T47.63 47.641 16x8 ... At 14:57 d Vol 4,600,984 0 47.407 H 47.80 F L 47.237 Val 218.865M MS US Equity Export Settings Equity Relative Valuation Comp Source My Comp Groups Name Investment Banking Group Curr USD vs Comps Group Dynamics vs Self Analysis of MS US Multiples - Premium to Comps Current vs 2Yr Average Historical Premium Metric Current Hist Avg Diff # SD 3M Trend Current Price 11 LF P/BV -20% -13% -7% -1.2 12 BF P/E 1% -6% -0.9 13) FY1 P/E -6% -0.8 14 FY2 P/E -5% 1% -6% -1.0 3M 6M 1Yr 2Yr 5Yr 2Yr Historical Premium Range Implied @ Hist Avg Low Range High Multiple Price (USD) Current Hist Avg 47.64 -29% -2% 1.2x 51.68 - 13% 12% 9.9% 50.50 -21% 10% 10.3x 50.94 -13% 12% 9.4x 50.76 9 View All Comps Below Summary of Current Multiples Mkt Ca... Mkt Cap (M) 80.31B Name D Morgan Stanley Current Premium to Comps Mean Mean (Including MS US) LF P/BV 1.1x -20% 1.4x BF P/E FY1 P/E FY2 P/E- 9.4x 9.6x 8.8x -5% -9% -5% 9.8x 10.6% 187.91B Bank of America Corp 3) Goldman Sachs Group Inc/The 4 Citigroup Inc 9 Berkshire Hathaway Inc Grey values are excluded from group stats. 0.83 0.82 0.81 0.70 292.30B 76.99B 161.80B 524.82B 1.2x 0.9x 0.9x 1.5x 10.3x 8.4x 8.7x 20.1x 10.6x 9.6x 8.6x 7.9x 1x 8.0x 20.5x 19.4x 10 Analyze List