Let's say that you are asked to value Google. You find that the P/E of...

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Finance

Let's say that you are asked to value Google. You find that the P/E of Google is 31. Now, you calculate the median P/E ratio of Google's closest competitors which you believe are strong matches in all relevant areas. The competitors' median P/E is 25. Assume that Google must be either undervalued or overvalued (i.e., assume Google is not fairly valued). True/False - Google appears to be overvalued?

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