Suppose you gathered the following information regarding Beta Corp: Current year (2015) EPS = $4 Plowback ratio = 0.4 Required return = 12% Current stock price = $50 Dividend growth rate in the foreseeable future = 5%

Estimate the P/E of the company's stock using, Justified/theoretical trailing P/E and Trailing P/E based on market price. Comment on whether the company is currently over-valued, under-valued or fairly valued.