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17 Juju Inc. is currently selling for $60 per share. The firm's earnings last year were $3 per share. You are trying to decide whether
17 Juju Inc. is currently selling for $60 per share. The firm's earnings last year were $3 per share. You are trying to decide whether the firm is a good choice for your portfolio. As part of your due diligence, you gather information on the P/E ratio for Juju's three closest competitors: 1) Comp One's P/E = 17, 2) Comp Two's P/E = 19, and 3) Comp Three's P/E - 18. Using the average P/E for the competing firms, is Juju a good buy? Why? Yes, because Juju is undervalued by $6 Yes, because Juju is overvalued by $6 No, because Juju is undervalued by $6 No, because Juju is overvalued by $6
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