Question
This question is related to Stocks valuation in Financial Management subject. We calculated share price of ABC company as 4.58$ with the help of Discounted
This question is related to Stocks valuation in Financial Management subject. We calculated share price of ABC company as 4.58$ with the help of Discounted Free Cashflow method. When used P/E ratio to compare its price with industrial average, its stock price values at 3.15$. ABC stock seems over priced in my opinion.
Explain why the stock price estimate from the discounted FCF model differs from actual stock price of ABC stock?
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Step: 1
The disparity between the stock price estimate from the Discounted Free Cash Flow DCF model and the actual stock price of ABC company could arise due ...
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Step: 2
Step: 3
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
