The junior analyst should express during the meeting that while the Dividend Discount Model (DDM) showed substantial undervaluation of the company its short-term stock prices are impacted by various external elements which exceed fundamental valuation methods. Stock prices in the short-term experience influence from four main factors which include market sentiment together with macroeconomic conditions and investor behavior alongside recent news events. DDM serves as a valuable evaluation tool yet it depends on well-foreseen stable dividend progression and reliable forecasting which might not represent actual market dynamics precisely.

She recommends using Discounted Cash Flow together with relative valuation ratios such as Price-to-Earnings and Price-to-Book in addition to DDM for better financial assessment. The valuation outcomes need testing through sensitivity analyses which evaluate how changes in assumptions influence results according to her proposal. The adoption of qualitative assessments dealing with management strength and industry trends and competitive risks would produce an expanded understanding of the situation.

Monitoring trading volume and institutional buying signals should be added to the strategy to help identify shifts in investor confidence which will clarify price changes independent of intrinsic value. The analysis of these trends assists in determining more effective timeframes for making suggestions.