Q3 Pepper Saltzman has been an employee of the Bank of MF for ten years. He recently transferred from the sales department to the research department in the Bank of MF. His first task after joining the research department is to conducting relative valuation using the price-earnings ratio. The target company is Amazon.com Inc. (ticker: AMZN). Saltzman uses the list of comparable companies that his colleague provides to collect the following information shown in the table. He notices that every company has positive forecasted earnings per share. Therefore, Saltzman suggests that the forward price-earnings ratio is an appropriate multiple for the relative valuation. Q: Is Saltzman's recommendation on using forward PE in relative valuation justifiable? Why? Price Basic EPS - Current Basic EPS - Mean Forecast Basic EPS - Median Forecast Number of Analysts Target AMZN 3256.93 41.83 18.85 18.95 41 VIAC 37.26 3.92 3.78 3.84 20 GOOGL 1752.64 54.92 41.52 41.63 36 Comparable MSFT CHTR 203.51 661.55 5.76 15.40 5.69 11.54 5.68 11.6 30 24 IBM 125.88 6.23 11.16 11.16 20 DXLG 1.11 0.10 0.01 0.01 1 JCOM 97.69 3.184 6.85 6.93 11