An analyst is worried that Mistral is misvalued by the market. Based on extensive research, they determine the following:

Free cash flow to the firm will be 2,500 for 2022, will grow by 15% in 2023, and then 5% per year subsequently, as the firm enters a steady state.

The firms WACC is 8%.

Assuming the information above is correct, is Mistrals stock

Under-valued

Neither under- no over- valued.

Over-valued