Use up to three different methods to calculate firm stock value.

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1. Dividend Discount Model (DDM): The DDM uses dividends paid out to shareholders in the past, current and estimated future dividend payments to arrive at an estimate of a stock’s value.
2. Price-to-Earnings Ratio (P/E): This ratio is used to compare a company’s share price with its earnings per share. It provides investors with an indication of how much they are paying for each dollar of the firm’s earnings.
3. Discounted Cash Flow (DCF): This method uses the present value of expected future cash flows from a business to calculate its stock value. It estimates the sum of all these cash flows discounted back at an appropriate rate for risk over time, providing an indication of what investors can expect from investing in the company’s shares today.