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and P/S ratio for those two companies Are those two stocks overvalued as compared to the industry? Explain why? 3. (10 pts) Use the information

  1. image text in transcribedand P/S ratio for those two companies

  2. Are those two stocks overvalued as compared to the industry? Explain why?

3. (10 pts) Use the information below: Company Book Value of Egwiry 2015 (millions of $) 19.950 Sales 2015 millions of 5) Shares Outstanding 2015 (williams) Price ($) Pfeiffer, Inc. 32.373 6,162 31.37 Mapps. Iac. 61,020 32.187 10.771 25.63 Peer Group Mean PB Medien MB Mean P/S (sales in millions of 5) Median P/S (sales in millions of 5) Medical Drugs 5.622 4.250 8.708 4.530 4.100 2.140 3.420 1.440 Applications Software Pfeiffer belongs to the Medical-Drugs group and Mapps belongs to the Applications Software group. a Calculate the P/B and P/S ratio for those two companies b. Are those two stocks overvalued as compared to the industry? Explain why

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