Evaluating XYZ Corporation's Valuation

In the context of assessing a company's market-based valuation, analysts often look at various multiples derived from comparable companies. One common approach is to use the Price-to-Earnings (P/E) ratio, which reflects the relationship between a company's stock price and its earnings per share (EPS). XYZ Corporation is evaluating its current valuation using this method by comparing its P/E ratio to that of a peer group in the tech sector.

Currently, XYZ Corporation has a P/E ratio of 15. The average P/E ratio of its peer group is 20. Assuming that analysts believe XYZ will grow its earnings sustainably in line with its peers, what conclusion can be drawn regarding XYZ Corporation's valuation?