This company is company is currently trading for $114.92.

Using DCF Discounted Cash Flow, the company's forecasted price for share is $94.62. Using market cap + premium, we get a forecasted price per share of $122.03.

Why do the two methods give different valuations for this company and which one is correct?

Valuation Parameters DCF Valuations (\$000) \begin{tabular}{|l|r|} \hline Market Capitlization: & 178.61 \\ \hline Market Premium: & 10% \\ \hline Market Cap + Premium & 196.47 \\ \hline Common Shares Outstanding & 1.61 \\ \hline Forecast Price per Share & $122.03 \\ \hline \end{tabular} Valuation Parameters DCF Valuations (\$000) \begin{tabular}{|l|r|} \hline Market Capitlization: & 178.61 \\ \hline Market Premium: & 10% \\ \hline Market Cap + Premium & 196.47 \\ \hline Common Shares Outstanding & 1.61 \\ \hline Forecast Price per Share & $122.03 \\ \hline \end{tabular}