It is sometimes suggested that stocks with low priceearnings ratios tend to be under priced. Describe a

Question:

It is sometimes suggested that stocks with low price–earnings ratios tend to be under priced. Describe a possible test of this view. Be as precise as possible.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...