1.) (10 points) The P/E ratio for a company is currently 17.8. The average P/E...
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1.) (10 points) The P/E ratio for a company is currently 17.8. The average P/E ratio in the market is 15.0. The average sector P/E ratio for the company's sector is 19.0. Historically, the ratio of the company's average P/E to the average market P/E has been 1.15, whereas the ratio of the company's average P/E to the average sector P/E has been 0.90. Using this information, determine if the stock of the company is currently undervalued or overvalued. Show your work and describe the reasoning for your decision
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