Giana Growers AG (GG) is currently selling at 9.8. Current EPS and current dividends per share are 1.4 and 0.9 respectively. Based on its selling price, the companys trailing P/E is 7.0 and P/S is 0.8. The ROE is 12.0 percent, the profit margin on sales is 10 percent. The Treasury bond rate is 2 percent, the equity risk premium is 6 percent and GGs beta is 1.2. Assuming the dividend and earnings growth rates are a constant 3 percent, the following conclusion is correct.

Is GG undervalued or undervalued using (i) P/E and (ii) P/S?