The above data is for five regional trucking firms.Based on price-earnings ratios,which firm's stock is the best value?
A)Firm A
B)Firm B
C)Firm C
D)Firm D
E)Firm E

Question

The above data is for five regional trucking firms.Based on price-earnings ratios,which firm's stock is the best value?
A)Firm A 
B)Firm B 
C)Firm C 
D)Firm D 
E)Firm E

Quizplus · Accepted Answer

To determine the best value based on price-earnings ratios, we want to choose the firm with the lowest ratio. As we can see from the given data, Firm B has the lowest P/E ratio of 10.5, which means it is undervalued relative to its earnings. Therefore, Firm B is the best value option.

The Above Data Is for Five Regional Trucking Firms