Using the perspective of an Equity investor, use the financial ratios to argue which one is the firm that offers the best investment opportunity?
Using the perspective of an Equity investor, use the financial ratios to argue which one is the firm that offers the best investment opportunity?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Using the perspective of an Equity investor, use the financial ratios to argue which one is the firm that offers the best investment opportunity?
Transcribed Image Text:Price/Sales
Price/Earnings
Price/Cash Flow
Price/Book
Price/Forward Earnings
PEG Ratio
Earnings Yield %
Enterprise Value (Bil)
Enterprise Value/EBIT
Enterprise Value/EBITDA
Return on Assets %
Retun on Equity %
Retun on Invested Capital %
Operating Margin %
Net Profit Margin %
Payout Ratio %
Home Depot
2022
Current S-Year Average
2.07
2.06
19.04
19.64
24.68 16.24
248.01 235.68
18.69
20.45
1.64
2.01
5.25
5.09
369.17
361.31
15.29 15.60
13.63 13.76
2022
23.07
2022
Current 5-Year Average
1.35
1.40
19.23 21.06
14.26 15.30
321.82
13.93
16:89
1.02 1.43
5,20
4.75
155.50 162.60
137,25
17.53
12.61
15.06 16.45
13.78
14.23
TTM 5-Year Average
TTM 5-Year Average 2022
21.33
18.41
13.21
2050.28 2065.27
655.27
38.16
35.58
14.88
10.48
49.81
15.24
10.87
44.30
2.23
21.59
19.40
354.60
21.08
2.37
4.71
324.30
16.85
14.86
Lowe's Companies
22.42
3222.30
14.47
14.69
10.38
46.83
13.50 29.57
12.56 10.51
8.74
6.47
85.71
41.14
1.98
23.11
16.09
59.56
17.51
1.33
4.61
12.38
165.46
19.17
9,89
6.37
37.87
Walmart
2022
Current 5-Year Average
0.65
0.70
43.63
31.42
16.55 11.70
5.53
25.06
3.47
3.18
0.65
33.77
13.34
4.80
23.00
3.76
3.23
414.81
21.98
13.76
5.29
21.83
3.71
2.29
436.17 490.66
29.39 20.98
16.98 14.14
2022
TTM 5-Year Average
5.50
5.59
16,66
17.87
10.57
10.74
4.53
3.46
2.39 2.23
68.62
43.46
5.17
16.27
9.73
4.02
2.20
57,95
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