EMI Group - Reaping the rewards

In what way "too cheap" and "sp undervalued", scab? At current price, trades on a PER of nearly 18 (against market av around 14). Analysts' forecasts suggest pedestrian profit growth resulting in PER's of 16.8 for current year and still above-average 15.2 in 2006. Divi yield is 3.36% but only covered 1.7x, so not much room for growth. On fundamentals, therefore, it would appear to be 'fully valued' rather than "too cheap" wouldn't it? Surely what's keeping it up there is takeover hopes, which is a fair reason for a punt (yes, I've got a few!), but hardly "undervalued".

Regards, Ian