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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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