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Topic: |
Business
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Number of pages / Number of words: |
6 / 1515 |
Essay's paper body
According to average industry index of 7.48, companies are positive after paying taxes and interest. This shows the poor performance of Ford in the past few years. This P/E ratio is historical calculation, so it is not necessarily an indication of the future growth potential of the company, but it shows its weakening position in the past few years...
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For good estimation of its value, forward P/E ratio should be claculated, which falls out of the scope of this assignment. The P/E ratio decreased in 2007. It remains far above the industry average indicating the still high investorâs trust in Microsoft and see it as a company with good growth opportunities compared to the peers...
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