Market-Based Valuation of XYZ Company

XYZ Company operates in the technology sector and has a market capitalization of $500 million. Recently, analysts reviewed several companies in the same sector and noticed that the average price-to-earnings (P/E) ratio for these companies is 25. Based on this data, they believe that XYZ Company’s fair value can be estimated using the average P/E ratio of comparable firms.

Assuming XYZ Company has earnings of $20 million, what is the estimated fair value of XYZ Company's equity using this market-based valuation approach?