You are analyzing a group of 6 stocks from the same industry The following table has the forward PE for each stock and your perceptions of each firms potential for growth Firm Forward PE Growth potential A 35 Strong B 18 Strong C 22 Modest D 20 Modest E 26 Weak F 12 Weak a) Which firm (choose 1) looks undervalued Why b) Which firm (choose 1) looks overvalued Why

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. You are analyzing a group of 6 stocks from the same industry. The following table has the forward PE for each stock and your

. You are analyzing a group of 6 stocks from the same industry. The following table has the forward PE for each stock and your perceptions of each firms potential for growth.

Firm	Forward PE	Growth potential
A	35	Strong
B	18	Strong
C	22	Modest
D	20	Modest
E	26	Weak
F	12	Weak

a) Which firm (choose 1) looks undervalued? Why?

b) Which firm (choose 1) looks overvalued? Why?

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