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Valuation by comparables worked much better for some of the companies in Table 7.3 than for others. Choose four electric utilities, for example, ED, DUK,
Valuation by comparables worked much better for some of the companies in Table 7.3 than for others. Choose four electric utilities, for example, ED, DUK, ES, and FE, and four computer software firms, for example, INTU, MSFT, ADBE, and ORCL. Collect both P/E and market-to-book value ratios of each firm from Yahoo! Finance. For which industry will valuation by comparables work better? Does this make sense to you? (LO7-2)
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