I- Executive summary
PE ratio is used by many investors in financial evaluate. This ratio is very popular. It is
calculated by the following equation:
PE =
PE ratio measures the relationship between the stock price of a company and income from
that stock. PE also reflects the market expectation of the growth of stock in the future. In
this report, we will consider PE ratio of some confectionary companies to evaluate their
stock price.
II- Selected company
I choose Kinh Do company (KDC), which is in food industry sector, and compare it with
Bibica Company (BBC, Hai Ha Company (HHC), Tuong An Company (TAC), Go Dang
Company (AGD) and Bien Hoa Sugar Joint stock Company (BHS).
Kinh Do joint stock company, which was established in 1993. Its charter capital is 3,483
billion VND. Kinh Do already had 600 distributors, 31 Kinh Do Bakery store and many
retailers in all cities and provinces in Vietnam. Kinh Do also exports its products to more
than 35 countries like America, Japan, France, Germany, Singapore, etc. Besides, Kinh Do
invests in finance servicing, consignment, as well as purchasing and producing agricultural
product, trading garments, shoes, bags, watches, cosmetic products, crafts, fresh vegetable,
etc.
That is the data in 2012. As we can see that the net income of Kinh Do Company is
highest, and much more than double compared to the second rank company (BHS’s net
income was just nearly 97 billion VND), and more than 16 times compared to the lowest