Stock valuations relative market valuation (20%) 1. (15 pts) Using the P/E ratio plot below, explain what that means in your own language. a. Explain trailing (historical) P/E and leading (forward) P/E, and how they can impact the results of your analysis when analyzing different types of companies? b. How the analysis below is conducted (assume Ordinary Least Square regression)? c. What does that imply about the future? Stock valuations relative market valuation (20%) 1. (15 pts) Using the P/E ratio plot below, explain what that means in your own language. a. Explain trailing (historical) P/E and leading (forward) P/E, and how they can impact the results of your analysis when analyzing different types of companies? b. How the analysis below is conducted (assume Ordinary Least Square regression)? c. What does that imply about the future