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You valued a publically listed firm using a DCF model with a perpetuity terminal value (TV). Your model-estimated share price is 10 times higher than

You valued a publically listed firm using a DCF model with a perpetuity terminal value (TV). Your model-estimated share price is 10 times higher than the market-traded share price. How can you make your model-estimated share price closer to the market-traded share price? You can:

1. Lower the beta of equity.

2. Lower the growth rate of the perpetuity terminal value.

3. Lower the required return or WACC.

4. Lower the risk free rate.

5. Lower the market risk premium.

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