There are many possible formulas that can be used to value common stocks, but most of them are simply present value models (e.g., the constant-growth dividend discount model, the two-stage growth model, the three-state growth model, the free cash flow model, etc.,). What is the major difference between them/ The difference between them is the required rate of return. The difference between them is the term to mature. The difference between them is in the pattern of future cash flows that they assume, or the particular cash flow that they use (e.g., dividends or free cash flow) There is no major difference between them