IF DONE IN EXCEL PLEASE SHOW CALCULATIONS

You are a financial analyst with BigWhale Fund. Your specialty is in analyzing FAANG stocks. The FAANG stocks are: Facebook Amazon Apple Netflix Alphabet (Google) You decided to use relative valuation (multiples) to see if each one of them is fair valued, undervalued, or overvalued. Specifically, you want to compare that P/E ratios with the average P/E ratios of the 5 firms. You checked each firm's information on Yahoo Finance at the end of July 26, and found the following information: Price EPS Facebook Amazon Apple Netflix Alphabet 230.71 3,008.91 370.46 480.45 1,511.87 7.29 145.17 12.73 5.92 49.57 Table 1: FAANG Calculate and answer the following questions: 1. Calculate P/E ratio for each firm, and calculate the average P/E ratio for these firms, and compare each individual firm's P/E ratio with the average, and state whether each firm is fair valued, undervalued, or overvalued according to this criteria. 2. Suppose you believe the average P/E ratio reflect fair valuation, how much should each stock be selling at the moment