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Do the dividend discount model (DDM, also called the perpetuity formula) and price-to-earnings (PE) multiple valuation methods always give similar and fair asset valuations for
Do the dividend discount model (DDM, also called the perpetuity formula) and price-to-earnings (PE) multiple valuation methods always give similar and fair asset valuations for listed and unlisted stocks, real estate and bank deposits? When would they differ in their valuations? Structure your answer to address one point per paragraph, with your reason given in the first sentence of that paragraph. Extra marks are awarded for giving specific examples of the types of assets that give different results, and whether each method over- or under-values the asset
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