Compute the price earnings ratio for each of these four separate companies. Which stock might an analyst likely investigate as being potentially undervalued by the market? Explain.
|
Company |
Earnings |
Market Value |
|
1 |
$10.00 |
$166.00 |
|
2 |
9 |
90 |
|
3 |
6.5 |
84.5 |
|
4 |
40 |
240 |