Fergeson Learning is a retailer focused on education supplies. The company recently reported earnings per share of $$3\mathrm{.}93.$ Based on its recent price of $$44\mathrm{.}78$ the company has a PE ratio of $11\mathrm{.}39.$ The educational supplies industry PE ratio is $19\mathrm{.}25.$

Assuming that comparable industry companies are priced correctly the intrinsic value of Fergeson Learning$$s equity per share is:

Group of answer choices

Undervalued by $$30\mathrm{.}89$ per share

Overvalued by $$3\mathrm{.}93$ per share

Overvalued by $$30\mathrm{.}89$ per share

Priced correctly