When assessing a firm's PE ratio, what would be the most correct way to view$/$ interpret this ratio?

$1)$ A high PE means the stock is overvalued.

$2)$ A low PE means the stock is undervalued.

$3)$ The PE ratio gives a general indication on the level of earnings growth the market believes the stock will generate going forward.

$4)$ A high PE means the stock is undervalued.