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Suppose that this year's PE ratio for Seahawk, Inc. is 22 and the industry average PE is 30 . Also suppose that the average PE

Suppose that this year's PE ratio for Seahawk, Inc. is 22 and the industry average PE is 30. Also suppose that the average PE for Seahawk over the previous ten years has been 18. Based on the PE multiplier, is Seahawk undervalued or overvalued, relative to the industry and relative to its historical average?

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