Price Ratio Analysis

Price Ratio Analysis is widely used in the investment industry to find the price of stocks. I provide my students with Value Line Investment Surveys of sample firms so that they can apply the price ratio analysis to evaluate the price of stocks of real firms. Kindly click on the following link to get the Value Line Investment report of Walmart.

Walmart’s Value Line Investment Report

After downloading such reports, students need to use the data from the report and create an excel sheet similar to the following one. This excel sheet will have the range of possible prices for firm’s stock.

Excel file for conducting Price Ratio Analysis

Now this activity makes my students really excited as they can apply their knowledge, learned in the course, to solve the real world situation. Hence, it keeps them engaged and help me to attain one of the important learning outcome of my course.

By: Dr. Zubair Ali Raja