Apply any of the stock valuation models covered in this week’s work to the company you are studying:
One of the Free Cash Flow Models
Dividend Growth Model
Market multiple model, with industry and competitor comparisons
Show the work and detail the steps you used to come up with a valuation. Compare your results to the
appropriate closing stock price of that company. Answer the following questions:
For what are we actually paying when we buy a share of stock?
How do we know if we are paying a fair price for the stock that we purchase?
Sample Solution
