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Use P/E multiples to value comparable stocks. The Pepsi company has a price-to-earning ratio of about 30 with earnings of about $3.40 per share. It

Use P/E multiples to value comparable stocks.

The Pepsi company has a price-to-earning ratio of about 30 with earnings of about $3.40 per share. It currently trades at about $100/share. The Coca-Cola company has a price-to-earnings ratio of about 19 and makes about $2.50/share in earnings. If Pepsi's valuation is correct, what can we infer about the valuation of Coca-Cola?

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