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Write a 2 page essay on CPI valuation.Download file to see previous pages... The price-to-earnings ratio represents the difference between CPI’s current share price in the market as compared to its

Write a 2 page essay on CPI valuation.

Download file to see previous pages...

The price-to-earnings ratio represents the difference between CPI’s current share price in the market as compared to its per-share earnings. Currently CPI has earnings exceeding $200,000,000 annually, however, it is only regionally located at this time within the United States. Major competitors of CPI in similar areas, hair care and personal hygiene are globally positioned with revenues in the billions annually. This specifically means that CPI is not able to play at the same level as some of the larger conglomerates. For instance Proctor and Gamble a global competitor listed as PG on the New York Stock Exchange traded on Friday April 21, 2011 for 63.27 a share with a volume of 10,616,245 shares on the market (Proctor and Gamble, 2011). This allows for over 600 million dollars in revenue available through stocks alone, with over 2/3rds more revenue than CPI in stocks alone in addition to a global presence Proctor and Gamble easily outpaces CPI. However, this is one aspect and should not keep the board from advancing the proposal to globalize and expand our market base and operations.

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