P/E ratio

or ETF. Samsung is a company that produces a large array of products including TV’s, Laptops, Phones, and other electronics. Currently, they are experiencing some scrutiny for their latest phone, it had an event where one of their phones actually exploded. This caused a major recall for the phone and sank the stock price. The ADR is now trading at $1,250 a share. Which is where a big red flag for investors is raised, when a stock price is that high it causes major risk exposure. Purchasing just 1 share of SSNLF you could purchases an ETF, Mutual Fund, or build a small portfolio of stocks for much cheaper with lower risk and most likely a better return. The dividend ratio is 1.4% and the P/E ratio is 10.5 which are both strong ratios but having the risk with the ADR is completely negates the strength of those ratios. After doing this quick analysis over Samsung, it was decided that in the live market place they are a fierce competitor but in the stock market that are not a good option for American investors to…

Co Inc (MRK), and Eli Lily and Co (LLY). The competition has a large portion of the market share. When validating a stock there are a few main areas that this analysis will compare, including major events within the company, dividend yield, capital gains, major trends, and the P/E ratio. Below is a comparison of the four companies on these benchmarks. The industry benchmarks are a dividend yield of 3.4%, and a P/E ratio of 27.5 (Market average is 19.6). This industry has a few particular…

Relative valuation methods are used because they are simple and easy to apply. It gives analysts a “quick and dirty” way to estimate the value of the company. However, relative valuation methods do not stipulate a direct estimate for a company’s fundamental value. They do not specify whether a firm is fairly priced but only indicates whether it is fairly priced relative to some benchmark which could include a group of comparable companies or its industry (Ferris & Petitt, 2013). The relative…

Choosing to participate in the market can be daunting on its own. Prior to evaluating your investment options, you should first determine your investment horizon, investable assets, risk tolerance and financial goals. Clearly defining your investment goals will help you determine an investment strategy best suited for you, and sometimes steer you to certain assets. When building your portfolio, you have likely run a cross two popularly referenced labels; growth stocks and dividend stocks. While…

This case study is going evaluate the two objective which are Telstra pay the dividends for shareholders and the executive compensation plan in Telstra also the way to incentive senior management team. The most important evaluation is that how does the Telstra can provide the dividends to shareholders by increase the profit form senior management team also realise the responsibility to shareholders. On 14 August 2014, the directors resolved to pay a final fully franked dividend of 15.0 cents…

of March 22, 2016, the P/E ratio for DUK is 19.28. This means that for every dollar invested, one would expect $19.28 in return. However, looking at P/E as a function of one day in time would not be prudent, rather an investor would have a better feel for the company if they reviewed the trailing P/E or leading P/E. In the case of DUK the P/E ratios are 19.48 and 16.40 respectively (Yahoo! Finance,…

are Avery Dennison (AVY), POSCO ADR (PKX), Newmarket Corp. (NEU), Nucor Corp. (NUE) and Insteel Industries Inc. (IIIN). Avery Dennison (AVY) Avery Dennison (AVY) is a company that specializes in Chemical (Speciality). The company S&P STARS Rank is 3 stars (HOLD) and the timeliness-Valueline is 2. The returns for the last 1 month, 3 months and 6 months (from YChart) are 1.79%, 8.76% and 9.88% respectively. Earnings growth of AVY are shown to be 15.96% for the last 6 months and 19.78% for the…

This reveals how much the company is worth. The shareholder’s equity is pretty much what is left of the assets after the liabilities. The company’s total liabilities are much higher than its equity, which gives a high debt-to-equity ratio of 3.06 in 2013. And in 2014, their debt to equity ratio decreased, but it’s still higher than one. This indicates that, if the company needed to repay their debt right away, the company would struggle to pay it off since their liabilities are more than the…

The IPO set price for Valvoline is has of April 21, 2017 was $22.23 but started as $24.10 (Vroom: Auto Company Valvoline Raises $660 Million in IPO). The graphs below show some of the price per earnings ratio, price/earnings to growth ratio, and forecast earnings growth. The estimated earnings growth show in Graph 1 seem unstable. It seem to be doing while every other year, which does not look stable to shareholders. Then considering the PEG ratio is promising some growth. Lastly, allowing for…

A higher P/E ratio than peer group average generally suggests that stock price may be overpriced, which is further confirmed by the significant price difference between actual stock price and stock price calculated using DCF model in this report. Additionally, CIMIC Group beta value is 1.6, which is higher than 1; It implies that CIMIC share is 60% more volatile than overall market movements. With current and forecasted negative outlook of construction industry considered, risk averse investors…