Question: Compare the stock prices produced by the two methods (i.e. comparables method and DFCF method) to the actual stock price. Explain to your boss why

Compare the stock prices produced by the two methods (i.e. comparables method and DFCF method) to the actual stock price. Explain to your boss why the estimates from the two valuation methods may differ from the actual. Specifically address the assumptions implicit in the models themselves as well as the assumptions you made in preparing your analysis. For example, how reliable are the growth rates used in the assumptions?

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