2. You have been given a list of software firms and have been asked to analyze...

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2. You have been given a list of software firms and have been asked to analyze them based upon the PEG ratio, taking into account any fundamentals that might cause PEG ratios to vary across firms. Company PEG Ratio Beta ROE AC Software 0.40 2.25 6.16% Delphi Systems 0.44 1.05 22.55% WorkSoft Inc. 0.50 1.00 3.17% Connectix 0.98 1.55 5.33% Visionary Systems 1.05 1.05 35.51% New Wave Software 1.10 0.80 20.60% a. Based upon the PEG ratio and fundamentals, which of these companies is most undervalued and why? (1.5 points) b. Based upon the PEG ratio and fundamentals, which of these companies is most overvalued and why? (1.5 points) 2. You have been given a list of software firms and have been asked to analyze them based upon the PEG ratio, taking into account any fundamentals that might cause PEG ratios to vary across firms. Company PEG Ratio Beta ROE AC Software 0.40 2.25 6.16% Delphi Systems 0.44 1.05 22.55% WorkSoft Inc. 0.50 1.00 3.17% Connectix 0.98 1.55 5.33% Visionary Systems 1.05 1.05 35.51% New Wave Software 1.10 0.80 20.60% a. Based upon the PEG ratio and fundamentals, which of these companies is most undervalued and why? (1.5 points) b. Based upon the PEG ratio and fundamentals, which of these companies is most overvalued and why? (1.5 points)

Answer rating: 100% (QA)

Answer a To determine which company is most undervalued based on the PEG ratio and fundamentals we n... View the full answer