The alternative options are fairly valued, undervalued and overvalued

3 The current stock price of Tiffany Inc. is $120. Use the following information to estimate the per share value with the dividend discount model: Its dividends will grow at 5% indefinitely. The company's most recent dividend (in year 0) was $6. You have the following information to estimate the cost of equity: o The equity beta of the stock is 1.2 o The risk-free rate is 3% . The expected market return is 8%. Tiffany stock is Select alternative in the market based on the valuation from the dividend discount model. Also estimate the per share value with PE multiple, using the following information: Tiffany will have earnings per share of $8 over the coming year. Assume that the average PE multiple for the industry is 15 Tiffany stock is Select alternative in the market based on the PE valuation result