Trueant Corp., the utility who provides power for much of San Francisco area, paid dividends per share of $4.00 in 2018, roughly 75% of its earnings per share in that year. It is a mature firm that expects to grow by 2% in perpetuity. The cost of equity for the firm is 8%. If instead you compute the cash flows after taxes, reinvestment needs, and debt payments, you find cash flows of $4.25/share for the most recent 12 months.

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If the current share price is $70/share, would you buy? Is the stock undervalued or overvalued?