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You are trying to price Giraldo Vineyards, a publicly-traded Argentine wine company, but your peer group is composed entirely of US vineyards. The summary statistics

You are trying to price Giraldo Vineyards, a publicly-traded Argentine wine company, but your peer group is composed entirely of US vineyards. The summary statistics (all in US $ terms) are below:

Giraldo Vineyards Publicly traded US Vineyards
PE 9 15
ROE 15% 12%
Expected Growth Rate 3% 3%

Assuming that both Giraldo Vineyards and the US companies are mature (growing at a constant rate forever) and that the US peer group is fairly priced, given its fundamentals, how underpriced or overpriced is Giraldo Vineyards, relative to the US peer group? (You can assume that the cost of equity for Argentine companies is 3% higher than the cost of equity for the US peer group).

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