There are many ways to value an asset. Valuation is a science, but it is also an art. Each method may not provide identical answers, and they can sometimes be far off.

A DCF model that incorporates using multiples and free cash flow is shown on slides $38-42$ for Tesla. Using a similar approach to slides $38-40,$ value a stock with the following information.

Assume

FCFE per share in time $0=$ $$1\mathrm{.}00$

FCFE per share in time $1=$ $$1\mathrm{.}10$

FCFE per share in time $2=$ $$1\mathrm{.}20$

FCFE per share in time $3=$ $$1\mathrm{.}30$

FCFE per share in time $4=$ $$1\mathrm{.}40$

FCFE per share in time $5=$ $$1\mathrm{.}50$

FCFE per share in time $6=$ $$1\mathrm{.}60$

FCFE per share in time $7=$ $$1\mathrm{.}70$

Assume change in capital $($net fixed assets and net operating working capital$)$ in time $7$ are $$0\mathrm{.}50$ per share.

Assume the P$/$E in time $7$ is $15$

Assume the cost of equity $($the discount rate or r$)$ is $10\%.$