Read the articles. These articles contain examples of evaluating P/E ratio. You will be using these examples to answer the questions listed at the bottom of the topic description.
1) Does Chicago Rivet & Machine Co’s (CVR) PE Ratio Signal A Buying Opportunity? by Kelly Murphy, Simply – Wall St. October 5, 2017
https://finance.yahoo.com/news/does-chicago-rivet-machine-co-201613354.html
2) Is Cynergistek Inc’s (CTEK) PE Ratio A Signal To Buy For Investors? by Mary Ramos Simply, Wall St. October 5, 2017
https://finance.yahoo.com/news/cynergistek-inc-ctek-pe-ratio-144611055.html
3) Does Katana Capital Limited’s (ASX:KAT) PE Ratio Signal A Selling Opportunity? by Kyle Sanford , Simply Wall St. October 5, 2017
https://finance.yahoo.com/news/does-katana-capital-limited-asx-074409705.html
For this question we will be using P/E ratio.
Use www.morningstar.com or www.marketwatch.com, enter the desired stock symbol to get to the company’s front page. Find P/E ratio is listed on the company’s page or calculate it.
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? explain your answers.
