Stocks Valuation – Discussion

Your contribution to the discussion requires 2-3 paragraphs, use of proper grammar, and citing of sources. Participation in the weekly discussion provides the opportunity to learn and apply new information in manageable amounts of timely contributions, and to receive useful feedback.

Referencing textbook readings, lecture material, and current business resources discuss the differences and similarities between the discounted dividend and corporate valuation models.

Also, the discounted dividend and corporate valuation models are two models to value common stocks. There is also alternative approach in stock valuation – multiples (ratio-based) valuation. P/E multiple is most commonly used ratio to value common stock. Explain briefly multiples valuation approach and how you might use each one to value a common stock.