Business Finance Assignment
Utilizing 1 of these public companies-Target, Coke, Pepsi, Wal-Mart, or J. P. Morgan-determine the right price for that company's stock in the following 5 easy steps:
1. Visit this Web site.
2. Type in your selected company's name in the Quote Search box, and select your company's stock symbol. Jot down the current stock price.
3. Select the Analysis tab, and find the Analyst Recommendation box. Jot down the stock's Earnings Per Share (EPS) Estimate.
4. Select the Price Ratios tab, and jot down the current Price to Earnings Ratio (P/E) for the industry (not the company).
5. Using the PE valuation model to determine the right price for this stock, multiply the industry average P/E ratio by the stock's EPS to estimate the intrinsic price of the stock.
Answer the following questions:
• Is this stock overvalued or undervalued when compared to the current stock price?
• What are the analysts' recommendations for this stock (buy, sell, or hold)?
o Do you agree with them? Would you consider purchasing this stock? Why?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.