Financial Market Analysis and Viability
Assess the financial viability of the two companies given above by performing a company and security analysis to determine if the stocks are over-valued or under-valued based on information gathered from:
P/E Ratio = stock price/ EPS
PEG Ratio = PE Ratio/ Earnings Growth Rate
Growth Rate = (Current EPS/ Last EPS) -1 X 100
1. Salada Foods Ltd
2. Seprod Ltd
a) The stock’s price-earnings ratio
b) The Price-Earnings Growth ratio
c) The interest rate of the country
d) Market capitalization to GDP
Note: What is the market capitalization of Jamaica stock exchange as it is now. If you cannot find information on 2022 use the near year. Research what is the GDP of Jamaica to do the calculations.
Formula for calculation: Market capitalization divided by Jamaica GDP.
e) The company’s activities, and revenues and profits generated.
NOTE: Review the company’s earning per shares. Indicate what is happening in each company’s generated revenue