This question is related to Stocks valuation in Financial Management subject. We calculated share price of ABC
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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?
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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