The following are the P/E ratios, growth rates, beta and payout ratios of some firms in the same industry
Company	P/E Ratio	Growth rate	Beta	Payout
BOE	17.3	3.50%	1.1	28%
GD	15.5	11.50%	1.25	40%
GMH	16.5	13.00%	0.85	41%
GRU	11.4	10.50%	0.8	37%
LK	10.2	9.50%	0.85	37%
LG	12.4	14.00%	0.85	11%
LR	13.3	16.50%	0.75	23%
MM	11	8.00%	0.85	22%
MD	22.6	13.00%	1.15	37%
NR	9.5	9.00%	1.05	47%
RY	12.1	9.50%	0.75	28%
RW	13.9	11.50%	1	38%
TH	8.7	5.50%	0.95	15%
UI	10.4	4.50%	0.7	50%
A. Estimate the average and median P/E ratios. What, if anything, would these averages tell you?
B. An analyst concludes that firm TH is undervalued, because its P/E ratio is lower than the industry average. Under what conditions is this statement true? Would you agree with it here?
C. Now use a regression methodology to estimate the P/E ratio of company TH.