Financial Management Submission Unit 2

  The Price is Right!

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