Part a.

The table below lists P/E Ratios for some ASX-listed retailers and the average P/E Ratio for the Consumer Discretionary Sector. From this information, what can you say about Super Retail Group, and what does this imply? What market research would you need to do before buying Super Retail Group shares on the basis of its P/E Ratio?

COMPANY P/E RATIO

JB Hi-Fi (JBH) 11.8

Super Retail Group (SUL) 8.4

Harvey Norman (HVN) 13.5

Nick Scali (NCK) 15.2

Consumer Discretionary Sector Average 10.2

(7marks)

You should keep atleast 6 decimal points for all numbers in the calculation steps and 2 decimal points in the final answer(both dollar amount and %, i.e.$12.34 and12.34%)