You cannot use Boeing but you can use another company.
Go to reuters.com and for the firm you have selected obtain the trailing twelve-month P/E ratio for the firm, industry, and sector. (You can use other sources if you wish)
Use information about your company’s earnings and industry and sector’s P/E s based on the P/E ratio value your selected firm as indicated in the example. If there is no earnings estimate, or the earnings estimate is negative, use earnings for a previous year. If that’s also negative, ypick another company for this assignment. There is an example of a partially completed table found here. Note: the example is only complete for one of the two firms indicated. Your submission must include the data for both firms.
Once you have completed the above write a short report discussing the valuation of your selected firm and competitor. Note if the current price is very close to “Estimated share price based on TTM P/E and Earnings past 12 months.” This should be very close if not you have likely done something wrong. How does the valuation of your firm compare to that of the competitors based on the P/E ratio? Why might this be the case? How does you firm’s current price compare to the estimated price using the industry and sector P/E’s compare both for the TTM and estimated year end? Is it higher or lower? Why might that be (provide one rational reason why)? Based on simple analysis which of the two firms (your selected firm and its competitor) appears to be undervalued? Why did you draw that conclusion? What do you suspect is the reason? Your submission will only need to be a single page to page and a half formatted with singles paced, Times New Roman, 12 point font. Include a citation for where you retrieved the data and the date retrieved. A table following the example must be included in your submission but is not considered as part of the page to page and a half write-up.
Sign in Excel Online FIND_518_M_3_Act_4_5_Table_Example Print Data Find Comments ABCDEFGHI Stock Current Firm P/E Firm Firm P/E High Last 5 yrs. Firm P/E Low Last 5 yrs. Industry P/E Ratio (TTM) Sector P/E Ratio (TTM) Symbol Share Price Ratio (TTM) 1 Selected Firm Boeing BA 124.8 17.79 28.93 13.76 25.9 31.64 2 Major Competitor Lockheed-Martin 3 4 Earnings past Mean Year Estimated share price based Estimated share price based on Estimated share price based on Stock Firm 12 months End Earnings on TTM P/E and Earnings Industry's TTM P/E and Sector's TTM P/E and Firm's Symbol (TTM)* Estimate past 12 months Firm's earnings TTM earnings TTM 5 Selected Firm Boeing BA 7.00 8.37 124.53 181.30 221.48 6 Major Competitor Lockheed-Martin 7 8 Estimated share price based Mean Year Estimated share price based Estimated share price based on Estimated share price based on Stock Earnings past on Firm's TTM P/E and Firm End Earnings on TTM P/E and Earnings Industry's TTM P/E and Mean Sector's TTM P/E and Mean Symbol 12 months* Mean Year End Earnings Estimate past 12 months Year End Earnings Estimates Year End Earnings Estimates Estimates 9 Selected Firm Boeing BA 7.00 8.37 124.53 148.90 216.78 264.83 10 Major Competitor Lockheed-Martin 11 * The 4 most recent quarterly reports, earnings form each report added together. 12 13 14 15 16 ? Sheet1 Sheet2 Sheet3 HELP IMPROVE OFFICE
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