Consider the information below about the following three stocks: AAA, BBB and CCC: ...

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Accounting

Consider the information below about the following three stocks: AAA, BBB and CCC:

AAA BBB CCC
Market Price 7 8 9
Number of Shares 10 11 12
Cash 13 14 15
Debt (market value) 16 17 18
EBITDA 19 20 21

Based on the information above, you can conclude that AAA, which is currently trading at a market price of $7, is:

Overvalued in the market

Undervalued in the market

Correctly priced in the market

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