You are asked to value Apple's stock using a P/E Model approach. You forecast the EPS next year to be $5.00 and the multiple that you use is 20x as you feel a market multiple is warranted. The stock is currently at $150. Based on your forecast and using a required rate of return of 10%, which of the following is true?
Group of answer choices
a. The stock is fairly valued
b. The stock is overvalued
c..The stock is undervalued