Question
You are tasked with completing a Comparable Company Analysis for an Aerospace & Defense stock. In the following questions, we need to understand the optimistic
You are tasked with completing a Comparable Company Analysis for an Aerospace & Defense stock. In the following questions, we need to understand the optimistic and pessimistic possibilities behind each ratio.
1: If our stock has an average Price-to-Earnings ratio compared to it's competitors, what does this tell us?
2: If our stock has a below average EV/Revenue Ratio compared to it's competitors, what does this tell us?
3: If our stock has a below average, arguably low EV/EBITDA Ratio compared to it's competitors, what does this tell us?
4: If our stock has a considerably high Price-to-Book Ratio compared to it's competitors, what does this tell us?
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