The above data is for four 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

Question

The above data is for four 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

Quizplus · Accepted Answer

Firm B has the lowest price-earnings ratio (P/E ratio) of the four firms, which indicates that the market is valuing it at a lower multiple of its earnings compared to the other firms. Therefore, Firm B's stock is the best value.

The Above Data Is for Four Regional Trucking Firms