In the table, you have 25 comparable companies along with information on P/E ratio, expected growth in EPS, regression beta, and payout ratio. Assuming that P/E is modeled as a linear function of the three latter variables and using regression estimates based on the data,

How many of the companies (out of 25) in the list are undervalued based on your predicted value of P/E ratio (using all of the variables in the regression (and including regression constant) regardless of statistical significance).

Company Identifier P/E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Expected Growth Regression Beta Payout Ratio 7.8 0.06 1.1 0.55 8.9 0.075 1.5 0.7 11.2 0.11 0.65 0.45 12.5 0.08 1.2 0.65 12.8 0.12 1.54 0.6 16.6 0.08 1.5 0.5 18.3 0.11 0.81 0.55 19.6 0.16 0.75 0.4 20.8 0.13 1.64 0.6 21.1 0.14 0.75 0.55 21.5 0.22 1.8 0.25 21.7 0.12 1.1 0.35 22.7 0.31 1.2 0.6 24.6 0.11 1.9 0.45 25.7 0.07 0.87 0.35 27 0.09 1.4 0.4 28.4 0.32 3.2 0.4 29.8 0.14 0.95 0.4 31 0.33 1.7 0.5 32.5 0.18 2.4 0.25 35.7 0.13 1.1 0.4 42.2 0.14 1.8 0.25 44.3 0.2 2.7 0.2 45.2 0.19 1.2 0.35 71.3 0.44 2.1 0.2 15 16 17 18 19 20 21 22 23 24 25 Company Identifier P/E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Expected Growth Regression Beta Payout Ratio 7.8 0.06 1.1 0.55 8.9 0.075 1.5 0.7 11.2 0.11 0.65 0.45 12.5 0.08 1.2 0.65 12.8 0.12 1.54 0.6 16.6 0.08 1.5 0.5 18.3 0.11 0.81 0.55 19.6 0.16 0.75 0.4 20.8 0.13 1.64 0.6 21.1 0.14 0.75 0.55 21.5 0.22 1.8 0.25 21.7 0.12 1.1 0.35 22.7 0.31 1.2 0.6 24.6 0.11 1.9 0.45 25.7 0.07 0.87 0.35 27 0.09 1.4 0.4 28.4 0.32 3.2 0.4 29.8 0.14 0.95 0.4 31 0.33 1.7 0.5 32.5 0.18 2.4 0.25 35.7 0.13 1.1 0.4 42.2 0.14 1.8 0.25 44.3 0.2 2.7 0.2 45.2 0.19 1.2 0.35 71.3 0.44 2.1 0.2 15 16 17 18 19 20 21 22 23 24 25