EVALUATION OF P/E RATIO
Step 1: Read the articles. These articles contain examples of evaluating P/E ratio. You will be using these example to answer the questions listed at the bottom of the topic description.
You must use the company assigned for you for the project. (EBAY vs
Please also note that your answers should be written in your own words. Don’t use quotes from the articles.
You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.
For this question we will be using P/E ratio.
To find a company’s P/E ratio, use www.morningstar.com , enter the desired stock symbol to get to the company’s front page. The P/E ratio is listed on the company’s front page.
Compare the P/E ratio of your company with the industry average or with major competitors.
Is there a difference between these numbers?
Is the stock overvalued, undervalued, or properly valued? Why?
In accordance with your findings, is it reasonable to buy the stock?
Please explain your answers.
Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.
You must start a thread before you can read and reply to other threads