Using the Excel spreadsheet in the course page, please answer the following questions: 1) Volkswagen multiple (P/E ratio) is 16.3, while the industry average is 7.58. An analyst is thinking about multiplying the industry P/E ratio by Volkswagen's EPS to find a fair valuation of Volkswagen's shares. Is this the right way to proceed? Does this imply that Volkswagen is over- valued, under-valued or correctly priced in December 2008? 2) What should be the comparable firms' set for the P/E analysis? Think about the factors affecting your choice. 3) What is the value of Volkswagen stock using P/E multiples valuation?