Analyst did stock valuation of DFB Inc., which is a public company, using different models and techniques: using industry multiples (PE and EBITDA/EV ratios); CDG
Analyst did stock valuation of DFB Inc., which is a public company, using different models and techniques: using industry multiples (PE and EBITDA/EV ratios); CDG model and FCF model. Which of these three approaches (multiples, CDG or FCF models) you would deem as relatively more reliable valuation tool? Why? Briefly discuss and compare all three
Valuation Method | Price Estimate |
| Multiples | $46.57 |
CDG model | $39.53 |
FCF model | $49.33 |
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Authors: Michael C. Knapp
8th edition
978-0538466790, 538466790, 978-1285066608
