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Consider the information below about the following three stocks: Amethyst, Sapphire and Tanzanite. Amethyst Sapphire Tanzanite Market Price $26 $16 $10 Number of Shares 4

Consider the information below about the following three stocks: Amethyst, Sapphire and Tanzanite. Amethyst Sapphire Tanzanite Market Price $26 $16 $10 Number of Shares 4 20 3 Cash $10 $65 $22 Debt (market value) $10 $40 $15 EBITDA $16 $30 $18 Based on the information above, you can conclude that Amethyst, which is currently trading at a market price of $26, is

Overvalued by 17%

Undervalued by 17%

Overvalued by 25%

Undervalued by 25%

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