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You've analyzed the ratios of 3 public companies in businesses similar to yours, and calculated the following averages: P/Assets=2 P/Customers=900 P/E=15 P/EBIT=10 P/Sales=6 Your company's
You've analyzed the ratios of 3 public companies in businesses similar to yours, and calculated the following averages: P/Assets=2
P/Customers=900
P/E=15
P/EBIT=10
P/Sales=6 Your company's financial forecast for next year is:
COGS $1mm
Fixed Costs $1mm
Net Income $1mm
Sales $4mm
Total # Customers 4,000
Total Assets $3mm Which ratio will give you the highest valuation?
A. P/E
B. P/EBIT
C. P/Sales
D.P/Customers
E. P/Assets
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