At the End of 1991 the consensus on Wall street estimated that dividends and profits of Philip Morris would grow by 20% per year over 5 years. After thatdynamic period, growth would fall back to 7% per year. Analysts assumed that the required return on equity would be 10%. The usual investment horizon was assumed to be 10 years.

• how do I find the fair value of PM based on a multi-stage DD-Model.
• How do I find PMs PE & P/BV in absolute &re-lative term versus the S&P