Market-Based Valuation Using P/E Ratio

In equity valuation, market-based valuation techniques leverage the market prices of comparable companies to assess a company's worth. A common approach in this method is the Price-to-Earnings (P/E) ratio, which compares the company’s earnings to its market value per share.

Assuming Company X has a P/E ratio of 15, and the average P/E ratio for its industry is 20. If Company X’s earnings per share (EPS) is $3, what would be an appropriate market price for Company X’s stock based on the average industry P/E ratio?