You are valuing a grocery store company with a beta of 0.9, a dividend payout ratio of 0.45, and an earnings growth rate of 0.08. The estimated regression for a group of other stocks in the same industry is Predicted P/E = 12.12 + (2.25 DPR) (0.20 Beta) + (14.43 EGR) where DPR is the dividend payout ratio and EGR is the five-year earnings growth rate. Based on this cross-sectional regression to calculate the predicted P/E for the food company. If the stocks actual trailing P/E is 18, is the stock fairly valued, overvalued, or undervalued?