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Q 2 . Consider the following question on relative valuation You are valuing two companies in the digital marketing sector, Company x and Company Y

Q2. Consider the following question on relative valuation
You are valuing two companies in the digital marketing sector, Company x and Company Y, to
determine which one might be a more attractive investment based on relative valuation metrics.
Further information:
Questions
a. Calculate the PE ratio of each company.
b. Provide brief analysis of which company might be considered relatively more attractive for
investors based on the calculated metric.
c. Discuss the relevance of the Relative Valuation approach in the digital business landscape.
Provide a brief explanation of how it contributes to the valuation process and how relative
valuation is different from DCF valuation.
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