The P/E ratio for BMI Corporation is 21, and the P/S ratio is 5.2. The industry P/E ratio is 35, and the industry P/S ratio is 7.5. Based on relative valuation, BMI is
A.
undervalued on the basis of relative P/E and relative P/S.
B.
overvalued on the basis of relative P/E and undervalued on the basis of relative P/S.
C.
undervalued on the basis of relative P/E and overvalued on the basis of relative P/S.
D.
overvalued on the basis of relative P/E and relative P/S.