The Price is Right! Utilizing 1 of these publiccompanies—Target, Coke, Pepsi, Wal-Mart, or J. P. Morgan—determinethe right price for that company’s stock in the following 5 easysteps: Visit this Web site. Type in your selected company’s name inthe Quote Search box, and select your company's stock symbol. Jotdown the current stock price. Select the Analysis tab, and find theAnalyst Recommendation box. Jot down the stock’s Earnings Per Share(EPS) Estimate. Select the Price Ratios tab, and jot down thecurrent Price to Earnings Ratio (P/E) for the industry (not thecompany). Using the PE valuation model to determine the right pricefor this stock, multiply the industry average P/E ratio by thestock’s EPS to estimate the intrinsic price of the stock. Answerthe following questions: Is this stock overvalued or undervaluedwhen compared to the current stock price? What are the analysts’recommendations for this stock (buy, sell, or hold)? Do you agreewith them? Would you consider purchasing this stock? Why?
