This panel discussion focuses on relative valuation in stock analysis, specifically using comparable company analysis. The discussion begins by reviewing reminders about case competitions and career services, then transitions into a detailed explanation of relative valuation, contrasting it with fundamental valuation methods. Participants explore various factors to consider when comparing stocks (size, location, accounting rules, management, customer base, leverage, growth), using TELUS as a recurring example to illustrate different valuation approaches and their potential discrepancies. Finally, the discussion touches upon the limitations of using PE ratios and introduces alternative metrics like the PEG ratio and CAPE, emphasizing the importance of considering macroeconomic factors and long-term risks like climate change when making investment decisions.
