BMB Inc. is expected to maintain its dividend payout ratio of 60% in the long term. The earnings per share (EPS) of the company are expected to be $1.80 next year. Earnings are expected to grow at a constant rate of 3% per year, in perpetuity. The current risk-free rate is 2%, the implied equity risk premium is 6.0%, and the estimated beta of the firm is 1.0. If the firm is currently trading in the market at a price-to-earnings ratio (P/E) of 20, which of the following statements is more likely to be correct: BMB is overvalued BMB is fairly priced BMB is undervalued