The stock of Gamma Corp. is currently trading at $47.75. The company just reported sales amounting...

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The stock of Gamma Corp. is currently trading at $47.75. The company just reported sales amounting to $15 million and has $1 million shares outstanding. Given that the benchmark P/S multiple is 5.6, comment on whether the stock is undervalued, overvalued, or fairly valued on a relative basis. a. The company's P/S ratio is closest to: Number Round your answer to one decimal b. How the stock is valued on a relative basis The stock of Gamma Corp. is currently trading at $47.75. The company just reported sales amounting to $15 million and has $1 million shares outstanding. Given that the benchmark P/S multiple is 5.6, comment on whether the stock is undervalued, overvalued, or fairly valued on a relative basis. a. The company's P/S ratio is closest to: Number Round your answer to one decimal b. How the stock is valued on a relative basis

Answer rating: 100% (QA)

a The companys PS ratio can be calculated by dividing the market capitalization by t... View the full answer