Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Cátia Pinho is a supervisor in the equity research division of Suite Securities. Pinho asks Flávia Silveira, a junior analyst, to complete an analysis of Adesivo S.A., Enviado S.A., and Gesticular S.A.Pinho directs Silveira to use a valuation metric that would allow for a meaningful ranking of relative value of the three companies’ shares. Exhibit 1 provides selected financial information for the three companies.
| Exhibit l.Selected Financial Information for Adesivo, Enviado, and Ges ticular |
| Adesivo | Enviado | Ges ticular |
| Stock's current price | 14.72 | 72.20 | 132.16 |
| Diluted EPS(last four quarters) | 0.81 | 2.92 | -0.05 |
| Diluted EPS(next four quarters) | 0.91 | 3.10 | 2.85 |
| Dividend rate(annualized most recent dividend) | 0.44 | 1.24 | 0.00 |


Silveira reviews underlying trailing EPS for Adesivo. Adesivo has basic trailing EPS of R$0.84. Silveira finds the following note in Adesivo’s financial statements:“On a per share basis, Adesivo incurred in the last four quartersi. from a lawsuit, a non-recurring gain of R$0.04; andii. from factory integration, a non-recurring cost of R$0.03 and a recurring cost of R$0.01 in increased depreciation.” Silveira notes that Adesivo is forecasted to pay semiannual dividends of R$0.24 next year.Silveira estimates five-year earnings growth rates for the three companies, which are presented in Exhibit 2.
| Exhibit 2.Earnings Growth Rate Estimates over Five Years |
| Company | Eam ings Growth Rate Estimate(%) |
| Adesivo | 16.67 |
| Enviado | 21.91 |
| Ges ticular | 32.33 |


Pinho asks Silveira about the possible use of the price-to-sales ratio (P/S) in assessing the relative value of the three companies. Silveira tells Pinho:● Statement 1The P/S is not affected by revenue recognition practices.● Statement 2The P/S is less subject to distortion from expense accounting than is the P/E. Pinho asks Silveira about using the Fed and Yardeni models to assess the value of the equity market. Silveira states:● Statement 3The Fed model concludes that the market is undervalued when the market’s current earnings yield is greater than the 10-year Treasury bond yield.● Statement 4The Yardeni model includes the consensus five-year earnings growth rate forecast for the market index. Silveira also analyzes the three companies using the enterprising value (EV)-to-EBITDA multiple.Silveira notes that the EBITDA for Gesticular for the most recent year is R$560 million and gathers other selected information on Gesticular, which is presented in Exhibit 4.
| Exhibit 4.Selected Information on Ges ticular at Year-End(RS milions) |
| Market | Valuee | Market | Value | of | Market | Value | of | Short-Tem |
| of Debt | Common Equity | Preferred Equity | Cash | Investments |
| 1，733 | 6，766 | 275 | 581 | 495 |


Pinho asks Silveira about the use of momentum indicators in assessing the shares of the three companies. Silveira states:● Statement 5Relative-strength indicators compare an equity’s performance during a period with the performance of some group of equities or its own past performance.● Statement 6In the calculation of standardized unexpected earnings (SUE), the magnitude of unexpected earnings is typically scaled by the standard deviation of analysts’ earnings forecasts.
Based on Exhibit 1 and the note to Adesivo’s financial statements, the trailing P/E for Adesivo using underlying EPS is closest to:
Option A:17.7.
Option B:18.2.
Option C:18.4.

Answer: C