Problem:
Please help with the following problem:
Valuation of a Company's Shares
The price earnings ratios on Feb 8th 2006 for five companies traded on the London Stock Exchange are listed below. All the companies are quite well know and involved in retailing in the UK. Discuss the factors that might explain the differences between these price earnings ratios.
Company Price/Earnings Ratio
Boots 19.9
JB Sports 9.4
Marks and Spencer 13.4
Morrison 47.2
Tesco 17.2