A. For Company I, list ten firms which you consider "comparable" to Company I. Create a single table of these ten firms
showing the Trailing P/E, Price/Sales, Price/Book and Enterprise Value/EBITDA ratio for each (You can find ratios
like these easily using public information sources like Yahoo Finance. For an illustrated example, click on this link:
Yahoo finance has useful ratios).
B. Assess the value of Company I using these criteria:
• What is the average and median Trailing P/E for the ten firms you chose as comparable to Company I? What do
these suggest about the value of Company I?
• What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company I?
What do these suggest about the value of Company I?
• What is the average and median Price/Book for the ten firms you chose as comparable to Company I? What do
these suggest about the value of Company I?
• What is the average and median Enterprise Value/EBITDA for the ten firms you chose as comparable to
Company I? What do these suggest about the value of Company I?
