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Use the following information for Question 2 below. Analyst did stock valuation of DFB Inc., which is a public company, using different models and techniques:
Use the following information for Question 2 below.
Analyst did stock valuation of DFB Inc., which is a public company, using different models and techniques: using industry multiples (PE and EBITDA/EV ratios); CDG model and FCF model.
Valuation Method | Price Estimate |
multples | $46.57 |
CDG model | $39.53 |
FCF model | $49.33 |
Which of these three approaches (multiples, CDG or FCF models) you would deem as relatively more reliable valuation tool? Why? (Briefly discuss and compare all three
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