To estimate the intrinsic value of a firm, investors could use the dividend discount model to estimate intrinsic value, or an earnings multiplier model based on a forecast of next year's EPS and what is thought to be an appropriate P/E ratio.

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The dividend discount model and the earnings multiplier model are both methods used to estimate a firm's intrinsic value, focusing on dividends and earnings respectively.

To Estimate the Intrinsic Value of a Firm, Investors Could