1. Select three stocks that are peers of the “PLT” stock for valuation purpose “Compare 3 ratio “. Please justify your selection and comment on the appropriateness of your selections. Go to Yahoo Finance put “PLT” in the search bar then on your left you will see Competitors and also key statistic click on it and see three peers.
2. Use the peer stocks as benchmark and apply the comparable (aka multiple) approach to value the subject firm. At least three multiples are required for this assignment. go to Yahoo Finance under Competitors and under Key Statistics
pick 3 of the five comparable :
1-P/CF
2-P/E1
3-P/B
4-EV/REVENUE
5-EV/EBITA
3. Discuss and comment on the results in previous step. Reconcile the results from various methods and recent market price, then, offer recommendation on the subject firm. “Reconcile” here means try to make sense and/or to explain the discrepancy across methods and the market price.
Please make sure you mention which firm is doing better than the other. or doing worst than the other. who is earning more and other stuff like that.