For Kim Only

EVALUATION OF P/E RATIO

Your assignment:

Please also note that your answers should be written in your own words. Don’t use quotes from the articles. 

For this question we will be using P/E ratio.

To find a company's P/E ratio, use www.morningstar.com , enter the desired stock symbol (Tiffany & Co. (TIF), and request a basic quote. Once you have the basic quote, the P/E ratio is listed on a front page.

Compare the P/E ratio of your company with the industry average or with major competitors. Is there a difference between these numbers?

Is the stock overvalued, undervalued, or properly valued? Why? 

In accordance with your findings, is it reasonable to buy the stock?

Please explain your answers.