60 An analyst is valuing a company with a beta of 1.2, a dividend payout ratio of 0.30, and an earnings growth rate of 0.10. The estimated regression for comparable companies is:

Predicted P/E = 12 + (5.75 × dividend payout) + (14.35 × earnings growth rate) – (0.60 × beta)

If the company's actual trailing P/E is 12, based on the P/E estimated from the cross-sectional regression, the stock is most likely: