Company XYZ Valuation Analysis

John is evaluating the stock of Company XYZ, which operates in the technology sector. To assess its market value, he decides to use the market-based valuation method by comparing XYZ's price-to-earnings (P/E) ratio with those of its peers. In his analysis, he found that Company XYZ has a P/E ratio of 18. The average P/E ratio of its competitors is 15.

Based on this information, which of the following conclusions can John make regarding the valuation of Company XYZ compared to its peers?