Explain why the estimates from two valuation methods differ

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Reference no: EM131308108

You have been asked to perform a stock valuation prior to the annual shareholders meeting next week. The two models you’ve selected to value the firm are 1) the dividend discount model and 2) the discounted cash flow model. Explain why the estimates from the two valuation methods differ. Address the assumptions implicit in the models themselves as well as those you made during the valuation process. Also, explain why these prepared estimates may differ from the actual stick price today, or any given day. (Please do not copy and paste someone else's answer to this question. Please reply with an original answer).

Reference no: EM131308108

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