Day 3 Practice Problems

Day 3 Practice Problems - 28.6 24.1 33.1 Communications...

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EPS 2001 2002 Q1 0.08 -0.05 Q2 -0.34 0.1 Q3 -0.27 0.15 Q4 0.00 0.30 2001 Q1 - Q3 are Actual Earnings 2001 Q4 and 2002 Earnings are estimates 1. Forward P/E (next 4 quarters) $128.60 2. Forward P/E (Current Fiscal Year) $(48.53) 3. Forward P/E (Next Fiscal Year) $51.44
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Stock Price as of November 8, 2001 $25.72
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What Sectors do you like for the near future? What Sectors do you disslike for the near future? In your opinion, are these sectors over-or under-valued? Basic Materials Communication Services
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2000 2001E Averages 22.4 23.5 26.5 25.1 23.8 17.8 Mid-Cap 400 22.6 20.4 23.8 Small-Cap 600 21.9 18.8 23.8 Basic Materials 24.7 26.4 26.3 Capital Goods
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Unformatted text preview: 28.6 24.1 33.1 Communications Services 22.7 31 26.9 Consumer Cyclicals 24.2 22.5 21.3 Consumer Staples 31.7 28.9 28.7 Energy 14.7 14.3 21.6 Financial 19.4 16.7 13.0 Health Care 37.7 28.5 24.9 Technology 30.6 43.1 28.8 Transportation 18.3 16.3 20.7 Utilities 28.6 16.5 13.4 Stock A Stock B Stock C FTSE 300 Current Price 23.00 50.00 260.00 1229.00 P/E 2003E 20.00 25.50 20.00 23.20 Five-year Average P/E 80.00 110.00 105.00 Relative Value 86% 110% 86% Which Stock is the most attractive? Stock C Hint: The correct answer required you to do two relative valuations....
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Day 3 Practice Problems - 28.6 24.1 33.1 Communications...

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