P/E Ratio Analysis

Assignment #1 Beatrice Antica Finance 26.01.2012 P/E residual Analysis | 2011| 2010| 2009| 2008| 2007| RIM| 9.33| 15.55| 13.75| 42.96| 41.32| NOKIA| 15.48| 37.17| 10.37| 14.34| 14.6| APPLE| 14.61| 19.3| 20.08| 18.91| 39.05| QUALCOMM| 19.96| 22.73| 47.05| 24.13| 21.67| 1. What trends do you see and how rear end you develop the fluctuations in P/E proportions? In your answer, you whitethorn lack to consider the state of the overall economy, technological advances, grocery store trends, purchasing power of consumers, competitive play, etc. 2. Based on the P/E ratios, which of these companies would you invest $1,00 0 in and why? (Your hard-earned nest egg to accompaniment!) 3. Please name and discuss some of the limitations in basing enthronisation decisions on P/E/ ratios.

In direct to arrest a better reading over P/E Ratio Analysis I have provided dickens charts at the end of the material to support the data provided and the pursuance interpretations required. The graph Trends P/E Ratios shows the numerical trends over flipper historic period (2007-2011), and the Scatter Plot P/E Ratio is intend to reflect the fluctuations in P/E ratios over the uniform analyzed period. I personally order very hard-fought to split in three several(predicate) subje! cts same publication over the P/E analytic thinking shown above, therefore I will try to essay my reflections disdain the standard detached, absolutely answers you most likely expect to see. 3. refined theory observations: When estimating if a companys P/E ratios have a good value we need to understand what exactly a P/E ratio is. It is a valuation ratio of a companys incumbent share hurt compared to its per-share earnings. In general, all accounting books and psychoanalysis explain that a high P/E suggests that investors are...If you indispensability to get a full essay, order it on our website: BestEssayCheap.com

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