Chase

Topics: Stock market, Financial ratio, Financial ratios Pages: 4 (1044 words) Published: July 14, 2013
William DeLong
FINC 350 G
Week 5 Project

The two companies that I will be comparing ratios for are Occidental Petroleum Corporation and Valero Energy Corporation to each other as well as to the industry.

First I would like to start of by comparing the P/E ratio, or the price to earnings ratio of the two companies as well as to the industry standard. This ratio is used to measure the relationship between a stock’s price and its earnings. It will tell you what the market is willing to pay for the company’s earnings. There fore when comparing these two companies and the market it looks like Valero Energy would when this based on P/E ratio because it is the lowest of the two and much lower than the S&P 500.

Occidental Petroleum Corporation P/E Ratio:
20082009201020112012TTM
7.222.717.511.513.416.6

Valero Energy Corporation
20082009201020112012TTM
N/AN/A14.35.79.16.0

S&P 500
20082009201020112012TTM
10.918.615.513.715.016.6

Second I will compare the price to book ratios of the two companies as well as to the industry standard. This ratio is used to compare a stock’s market value to its book value. The P/B ratio is calculated by taking the stocks price and dividing it by the total assets minus the intangible assets and liabilities. You can use this ratio to see is a stock is undervalued as well as to get an idea of what would be left if a company went bankrupt. There fore when comparing these two companies and the market it looks like Valero Energy would when this based on P/B ratio because it is the lowest of the two and much lower than the S&P 500, Which tells me that the stock is probably undervalued.

Occidental Petroleum Corporation
20082009201020112012TTM
1.82.32.52.01.51.8

Valero Energy Corporation
20082009201020112012TTM
0.70.60.90.71.01.0

S&P 500
20082009201020112012TTM
1.72.22.22.02.12.3

Third I will compare the price to sales ratios...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on The Chase by Annie DIillard
  • Essay about Annie Dillard's "The Chase"
  • High speed chases Essay
  • Introduction to Jpmorgan Chase & Co. Essay
  • chase bank Essay
  • Essay about The Chase
  • The Chase Essay
  • Mgt485-1001a Jp Morgan Chase Essay

Become a StudyMode Member

Sign Up - It's Free