option 1 is wrong

Khan Academy is a retailer focused on education supplies. The company recently reported earnings per share of $10.6. Based on its recent price, the company has a PE ratio of 16.5. The educational supplies industry PE ratio is 19.25. Assuming that comparable industry companies are priced correctly, the intrinsic value of Khan Academy's equity per share is: Priced correctly Undervalued $29.15 per share Overvalued $29.15 per share