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just choose 1 list company at NYSE or NASDAQ and (A) evaluate the value of the company with one of the pricing models (B) provide ratio analysis on the company.

Please deleted this question asap. thanks

Q4. (3596) Refer to Section 6.7 in the textbook at page 201-208, with the title of \"An Analysis of the E.l. du Pont Company\", and information searched on the internet, please choose one listed company at NYSE, NASDAQ, or stock exchange in your home country and then (A) evaluate the value of the company with one of the pricing models and (B) provide ratio analysis on the company.

Solution

One of the company that I have chosen as listed on NASDAQ is Facebook Inc.

Few information have been taken from the internet as on 31st December 2016:

A) Value of the company using PE Multiple:

Market Price/Earning Per Share= PE Ratio

Let MP= x

x/3.54= 37.05 (as reflected on internet)

Market Price= 131.157

No of share outstanding= 2889981334

B)

Value of the company= 379041.28 million

B) Calculation of various Ratios of the company:

Facebook Inc.\'s P/BV ratio increased from 2014 to 2015 but then slightly declined from 2015 to 2016 not reaching 2014 level.

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Facebook Inc.\'s P/E ratio increased from 2014 to 2015 but then declined significantly from 2015 to 2016.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Facebook Inc.\'s P/OP ratio increased from 2014 to 2015 but then declined significantly from 2015 to 2016.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Facebook Inc.\'s P/S ratio declined from 2014 to 2015 and from 2015 to 2016.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company\'s required rate of return and its actual rate of return.	Facebook Inc.\'s P/BV ratio increased from 2014 to 2015 but then slightly declined from 2015 to 2016 not reaching 2014 level.