Part 3: Firm Valuation Three-step DCF Approach Assume the company has perpetual constant free cash flow every year starting 2019 , and the firm has 576,575,000 shares outstanding. 1. Forecast the value of 3M and the value of its equity using the WACC approach. 2. Using the information on the number shares outstanding, estimate the stock price of 3M on as of Jan 1st,2019. Relative Valuation Approach Using Market Comparables 1. Choose two comparison firms in the same industry. 2. Calculate the P/E ratios of the comparison firms, using their first closing stock price in Jan. 2019, and EPS as of fiscal year end 2019. Note that you can get the EPS of the comparable firms from their 2019 income statement. 3. Using the average P/E ratio of the comparison firms, estimate the stock price of 3M as of the beginning of 2019