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Proprietary Technologies, Inc., (PTI) has a leading price-to-earnings (P/E) ratio of 28 while the median leading P/E of a peer group of companies within the industry is 38. Based on the method of comparables, an analyst would most likely conclude that PTI should be: A. bought as an undervalued stock. B. sold as an overvalued stock. C. sold short as an overvalued stock. |