As a leisure products analyst, you are working on the valuation of Polaris, a manufacturer of powersports

vehicles. Polaris is currently trading at $$103\mathrm{.}88$ per share. You are planning to use $\frac{P}{E}$ multiple to value the

company. The company's EPS for the most fiscal year was $$10\mathrm{.}77.$ The industry trailing P$/$E is $14\mathrm{.}8.$ What

should be Polaris's relative value based on an industry average P$/$E ratio of $14\mathrm{.}8?$ Is Polaris relatively over$-$

or under$-$valued compared with the industry?

a$)$ $$139\mathrm{.}54$; overvalued relative to the industry

b$)$ $$159\mathrm{.}40$; undervalued relative to the industry

c$)159\mathrm{.}40$ ; overvalued relative to the industry

d$)$ $$139\mathrm{.}54$; undervalued relative to the industry