You are asked to value Apple's stock using a P/E Model approach. You forecast the EPS next year to be $5.00 and the multiple that you use is 20x as you feel a market multiple is warranted. The stock is currently at $150. Based on your forecast and using a required rate of return of 10%, which of the following is true?

Group of answer choices

The stock is fairly valued

The stock is overvalued

.The stock is undervalued