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Enhanced Systems, Inc., (ESI) has a leading price to sales (P/S) of 0.18 while the median leading P/S of a peer group of companies within the industry is 0.10. Based on the method of comparables, an analyst would most likely conclude that ESI should be: A. sold or sold short as an overvalued stock. B. bought on margin as an undervalued stock. C. bought as an undervalued stock. |