Assume you are a financial advisor. You have a 'top client' that really likes a stock you've never heard of [at least until the client mentioned it], called FLIP company. FLIP's current stock price is $1,000. You have conducted your own DCF analysis (i.e. calculated the PV of expected future cash flows) of FLIP, and concluded that if your client paid $1,000 for it right now, the expected return over the next year would be less than the risk-free rate. Moreover, FLIP's beta is positive. Which of the phrases most accurately characterizes what you should say to your client (assuming you want to steer them in the smart-investing direction).

1 Don't buy FLIP. That stock is under-valued.

2Don't buy FLIP. That stock is over-valued.

3 Yes buy FLIP. That stock is under-valued.

4 Yes buy FLIP. That stock is over-valued.

I5 don't care what you do. FLIP stock is fairly-valued.