Your firm operates in an industry in which the average PE ratio is 15.2. Your firm's net income last year was $150 million, and its market cap is $3.5 billion. Calculate an initial value of your equity using a multiples approach and make a judgment on the value of your firm's equity.

Options:

A. The firm is overvalued.

B. The firm is undervalued.

C. The firm is properly valued.

D. There is not enough information to answer the question.