Data for two hypothetical companies in the pharmaceutical industry, DriveMed and MAT Technology, are given in the following table. For both companies, expenditures on fixed capital and working capital during the previous year reflect anticipated average expenditures over the foreseeable horizon.

On the basis of the information supplied, discuss the valuation of MAT Technology relative to DriveMed. Justify your conclusion.

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MAT Technology $78.00 Measure DriveMed Current price $46.00 Trailing CF per share $3.60 $6.00 12.8 P/CF 13.0 Trailing FCFE per share P/FCFE $5.00 $1.00 46.0 15.6 Consensus five-year growth forecast 15% 20% 1.25 1.25 Beta