Valuing ABC Corporation Using Market-Based Valuation

ABC Corporation, a company in the consumer discretionary sector, has recently been trading at a price-to-earnings (P/E) ratio of 15. Industry peers, which operate under similar market conditions and share comparable growth prospects, have average P/E ratios of 18. An analyst estimates that ABC's earnings will grow at a CAGR of 5% over the next five years, while the industry average growth rate is projected to be 7%. Considering this information, what would be the most appropriate market-based valuation approach to assess whether ABC is overvalued or undervalued?