What is the current valuation of XYZ if you expect EPS in $2025$ to be $$10?$ The stock paid a dividend of $$3\mathrm{.}00$ last year, which you assume will grow at $10\%$ per year. The market multiple is $18$x and XYZ should be valued at a $20\%$ premium to that $($at the end of $2025).$ The risk$-$free rate is $3\%,$ the market risk premium is $7\%$ and the beta of XYZ is $1\mathrm{.}1.$ Assume it is the end of $2023.$ Hint this is a $2$ year valuation problem $(2$ years on your timeline $-$ it is not a dividend discount model $-$ price $($valuation$)=$ P$/$E X EPS

P$/$E XYZ $=$ Market P$/$E X $(1+$ Premium$)$