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Q1. This question is related to Stocks valuation in Financial Management subject. We calculated share price of ABC company as 4.58$ with the help of
Q1. This question is related to Stocks valuation in Financial Management subject. We calculated share price of ABC company as 4.58$ with the help of Discounted Free Cashflow method. When used P/E ratio to compare its price with industrial average, its stock price values at 3.15$. ABC stock seems over priced in my opinion. What recommendations we can make as to whether clients should buy or sell ABC stock based on my price estimates from discounted FCF method? Please clarify with explanation. Thanks.
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