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Your supervisor told you she must conduct a comparative analysis using your calculated values. Thus, she asked you to obtain industry averages for each firm
Your supervisor told you she must conduct a comparative analysis using your calculated values. Thus, she asked you to obtain industry averages for each firm from Reuters.com (www.cnbc.com). Search for the stock symbol, click the Peers tab, then the Key Measures tab. (She told you to ignore the companys column as your calculations will differ.) You wanted to impress her for future employment or letters of recommendation, so you told her you wanted to give the comparative analysis a shot to learn more about it. So, she asked you to:
- Compare each firms ratios for the most recent year to the available industry ratios (automobile manufacturers and systems software).
- Analyze each firm's performance versus the industry and comment on trends in each firms performance. Identify any strengths or weaknesses you find in each firm.
- Examine the Market-to-Book ratios you calculated for each firm. Which of the two firms can be considered growth firms, and which can be considered value firms?
- Compare the valuation ratios across the two firms. How do you interpret the difference between them?
- Consider the enterprise value of each firm for each of the four years. How have the values of each firm changed over time?
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