peer response to The estimates from the dividend discount model (DDM) and the discounted cash flow model (DCF) often differ due to the underlying assumptions in each of the models. The DDM focuses on dividends as the primary cash flow to shareholders, making the assumption that dividends are the only value investors receive from holding the stock (Brigham & Ehrhardt, 2020). This model is most appropriate for firms with stable, predictable dividend payouts, as it assumes a constant growth rate in dividends. On the other hand, the DCF model estimates the value of the firm by discounting future free cash flows (FCFs) to their present value (Brigham & Ehrhardt, 2020). Unlike the DDM, the DCF approach values the entire firm, not just the equity, making it more comprehensive. It incorporates both operating performance and capital structure, which makes it more suitable for firms where dividends may not be a reliable reflection of their financial health