Question
Lowes has an earnings per share of $10.00 during 2022. An analyst is uncertain of whether to categorize Lowes broadly as a retail store where
Lowes has an earnings per share of $10.00 during 2022. An analyst is uncertain of whether to categorize Lowes broadly as a retail store where the benchmark PE ratio of 20 would imply its share price should be _________, or whether he should categorize Lowes as a home improvement store where the benchmark PE ratio of 15 would suggest that its share price should be _______. If we use a relative valuation approach we ________ know whether Lowes is truly under or overpriced, but only its valuation relative to its peers.
$150; $200; cannot
$200;$150; cannot
$200;$150; can
$150; $200; can
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