The P/E Ratio for BMI Corporation 21, and the P/S

question 45

Multiple Choice

The P/E ratio for BMI Corporation 21, and the P/S ratio is 5.2. The industry P/E ratio is 35 and the industry P/S ratio is 7.5. Based on relative valuation, what is the BMI?

• A) undervalued on the basis of relative P/E and relative P/S.
• B) overvalued on the basis of relative P/E and undervalued on the basis of relative P/S.
• C) undervalued on the basis of relative P/E and overvalued on the basis of relative P/S.
• D) overvalued on the basis of relative P/E and relative P/S.
• E) none of the above.

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Definitions:

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The management and reduction of pain using various strategies, including medication, physical therapy, and alternative methods.

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