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Consider the information below about the following three stocks: AAA, BBB and CCC:
| AAA | BBB | CCC |
Market Price | 7 | 8 | 9 |
Number of Shares | 10 | 11 | 12 |
Cash | 13 | 14 | 15 |
Debt (market value) | 16 | 17 | 18 |
EBITDA | 19 | 20 | 21 |
Based on the information above, you can conclude that AAA, which is currently trading at a market price of $7, is:
Overvalued in the market
Undervalued in the market
Correctly priced in the market
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