Can you make an excel equation to determine whether the stock is overvalued, fairly valued...
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Can you make an excel equation to determine whether the stock is overvalued, fairly valued or undervalued based on the chart above?
An analyst has prepared a table of the average trailing twelve-month price-to-earnings (P/E), price- to-cash-flows (P/CF), and price-to-sales (P/S) for XYT Company for the years 20X0 to 20X3: Year P/E P/CF P/S 20x0 4.9 5.4 1.2 20X1 6.1 8.6 1.5 20x2 8.3 7.3 1.9 20x3 9.2 7.9 2.3 As of the date of the valuation in 20X4, the trailing twelve-month P/E, P/CF, and P/S are, respectively, 9.0, 7.8, and 2.0. Based on the information provided, the analyst may reasonably conclude that XYT's shares are most likely: O overvalued. O fairly valued undervalued
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