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Present value models follow a fundamental belief in economics that individuals will defer consumption by investing in order to receive expected future benefits. Thus, the

Present value models follow a fundamental belief in economics that individuals will defer consumption by investing in order to receive expected future benefits. Thus, the value of an investment in a stock isbestcaptured by discounting the expected:
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price-to-earnings multiple for the shares.
enterprise value for the shares.
cash flows for the shares.

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