Company A$\text{'}$s EPS is $$1\mathrm{.}50.$ Its closest competitor, Company B$,$ is trading at a

P$/$E of $22.$ Assume the companies have a similar operating and financial profile. If

Company A$\text{'}$s stock is trading at $$37\mathrm{.}50,$ what does that indicate about its P$/$E ratio?

P$/$E ratio cannot be determined.

$\frac{P}{E}$ ratio is $22$

$\frac{P}{E}$ ratio is $25$

$\frac{P}{E}$ratio is $20$