you are examining the wide differences in price sales ratios that you can observe am 546319
You are examining the wide differences in price/sales ratios that you can observe among firms in the retail store industry and trying to come up with a rationale to explain these differences.
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you are examining the wide differences in price sales ratios that you can observe am 546319
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|
Price |
Sales |
Earnings |
Expected |
Beta |
Payout |
|
Bombay Co. |
$38 |
$9.70 |
0.68 |
29% |
145% |
0% |
|
Bradlees |
15 |
16860.00% |
1.75 |
12% |
115% |
34 |
|
Caldor |
32 |
14745.00% |
2.7 |
13% |
155% |
0 |
|
Consolidated |
21 |
2300.00% |
0.95 |
27% |
135% |
0 |
|
Dayton Hudson |
73 |
27290.00% |
4.65 |
13% |
130% |
38 |
|
Federated |
22 |
5890.00% |
1.4 |
10% |
145% |
0 |
|
Kmart |
23 |
10145.00% |
1.75 |
12% |
130% |
59 |
|
Nordstrom |
36 |
4385.00% |
1.6 |
12% |
145% |
20 |
|
Penney |
54 |
8105.00% |
3.5 |
11% |
110% |
41 |
|
Sears |
57 |
15000.00% |
4.55 |
11% |
135% |
36 |
|
Tiffany”s |
32 |
3565.00% |
1.5 |
11% |
150% |
19 |
|
Wal-Mart |
30 |
2935.00% |
1.05 |
19% |
130% |
11 |
|
Woolworth |
23 |
7415.00% |
1.35 |
13% |
125% |
65 |
a. There are two companies that sell for more than revenues, the Bombay company and Wal-Mart. Why?
b. What is the variable that is most highly correlated with price-sales ratios?
c. Which of these companies is most likely to be over/under valued? How did you arrive at this judgment?
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