Question

Based on the picture below why is this stock undervalued or overvalued? P/E Band - Valuation (PEBD): WMT US Equity Export Settings - Equity Relative Valuation Comp Source BICS Best Fit (Algo) Region Global Mkt Cap > Curr USD vs Comps Group Dynamics vs Self Price Bands Valuation Metric Bands Current 2Yr Avg Band (x) Avg+x Avg-x Est (USD) Avg+x Metric Current Price LTM P/E LTM P/BV LTM P/CE LTM P/S O 23.9x 4.7x 13.7x 0.7x 21.1x 4.0x 10.5% 0.6x 3M 6M Yr 2Y SYr 104 12M Fwd Implied Price @ 2Yr Avg Avg-x 118.91 118,91 118.91 108.95 118.77 99.12 110,64 124.55 96.73 97.86 109.03 86.69 108.63 127.59 89.67 1.9 0.5 19.2x 3.5x 9.3x 0.5x 23.0x 4.5x 11.7x 0.7x 5.17 27.82 9.31 189.58 1.2 0.1 Chart Table Price Bands Based On LTM P/E PX-11691 (Actual) @ P/E of 23.94 Px114.19 P/E of 2x PX=10475 P/E of 21.1x SEP 10 Suggested Functions DRSK Assess a company's risk health GP Chart securities & technical studies

200 words

Answer 1

The stock is overvalued because it's P/E ratio of 23.9 is above avg + x p/e of 23.

Also, it's P/BV of 4.7x is above avg + x P/BV of 4.5x.