Select four stocks of your choice that are diversified across four different sectors or industries. In your...

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Finance

Select four stocks of your choice that are diversified acrossfour different sectors or industries.
In your initial post, label your selected stock as “choice,” thecompetitor stock as “peer,” the industry information as “industry,”and list the P/E ratio for each of these categories.
Comment on your findings. Based on the P/E ratio, do you believeyour choice stock to be fairly priced, a ‘value,’ or overpriced ascompared to a peer and the industry as a whole? Why?

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4.4 Ratings (663 Votes)

source httpscsimarketcomindexphpPE ratio indicates the price paid for same level of earnings Astock with a higher PE is considered to be more expensiveBoeing is valued at PE of 4392 whereas Embraer is valued at4683 and PE of aerospace industry as a whole is estimated at2686 Both boeing and embraer is valued See Answer

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Transcribed Image Text

Select four stocks of your choice that are diversified acrossfour different sectors or industries.In your initial post, label your selected stock as “choice,” thecompetitor stock as “peer,” the industry information as “industry,”and list the P/E ratio for each of these categories.Comment on your findings. Based on the P/E ratio, do you believeyour choice stock to be fairly priced, a ‘value,’ or overpriced ascompared to a peer and the industry as a whole? Why?