FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain this well. If a company has traded with a PE ratio in the range of 5 - 15 over the last 10 years

Please explain this well.

image text in transcribed
If a company has traded with a PE ratio in the range of 5 - 15 over the last 10 years and it is currently traded a 7x would you buy it? Why? What if it were traded at 15x? Why? What if it were traded at 15x but margins are now 30% vs the 10 year average of 15% - why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Financial Markets And Institutions

Authors: Frederic S. Mishkin, Stanley G. Eakins

9th Edition

0134519264, 9780134519265

More Books

Students also viewed these Finance questions

Question

★★★★★
Would ocean tides exist if the gravitational pull of the Moon (and the Sun) were somehow equal on all parts of the world? Explain.

Answered: 1 week ago

Question

★★★★★
Consider these four statements. Choose true or false for each one in turn and then find the answer that matches your choices for all four together. 1. An ammeter should draw very little current...

Answered: 1 week ago

Question

★★★★★
Critical Thinking Locate the links to online periodicals at www.mhhe.com/waitley5e. Find and read an online article on any topic. Evaluate whether the article meets all of the seven standards of...

Answered: 1 week ago

Question

★★★★★
The data shown in Table 11.E1 come from a production process with two observable quality characteristics: x1 and x2. The data are sample means of each quality characteristic, based on samples of size...

Answered: 1 week ago

Question

★★★★★
The contract you are assigned to as the contracts administrator calls for the delivery of a product called "The Superwidget". The USG (the DoD and the Dept of State) buy thousands of these...

Answered: 1 week ago

Question

★★★★★
Better Fitness, Inc. (BFI) manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use...

Answered: 1 week ago

Question

★★★★★
Redd is the owner of an art gallery in Amsterdam.He has what he has always believed was a Rembrandt painting in his gallery.However, the Rembrandt Project has recently added this painting to the list...

Answered: 1 week ago

Question

★★★★★
* Question Completion Status: Moving to the next question prevents changes to this answer. Question 14 Question 14 of 60 2 points Save Ansver TG Mining has 100 000 shares outstanding and just...

Answered: 1 week ago

Question

★★★★★
+ QUESTION 2: A. From the below information Calculate Working Capital. Debtors $ 55,000 Inventories $ 15,000 Accounts Payable $ 12,000 Cash $ 4,000 Accounts Receivable $ 8,000 Creditors $ 16,500...

Answered: 1 week ago

Question

★★★★★
How to convert a one-dimensional array to a two-dimensional array in C#

Answered: 1 week ago

Question

★★★★★
strategy is about competitiveness so: How to better than others? Why the company want to be good as somebody else? Give example. Me as a customer: What is important to me when buying something new.....

Answered: 1 week ago

Question

★★★★★
Financial Strategy and Corporate Objectives, Financial Management Environment, Working Capital Management Notes in answering problems: 1. Do not round off anytime during the computation. 2. Use 360...

Answered: 1 week ago

Question

★★★★★
A triangle has vertices A(-3, -3), B(-5, 7), and C(2, 2). (a) Draw triangle ABC on the grid provided below. Label the points, and label the x-axis and y-axis. (b) Find the midpoint of side AB and...

Answered: 1 week ago

Question

★★★★★
1. Discuss the following statements: (a) A person who describes something, ignores something else. (b) Our description of something will always be different from the thing we describe. (c) Our social...

Answered: 1 week ago

Question

★★★★★
1. The concepts that are used to describe social situations are mental constructions.

Answered: 1 week ago

Question

★★★★★
The facts rule: We have a tendency to have more confidence in information that is documented with figures than information that isnt.

Answered: 1 week ago

Previous Question Next Question