1Assistant Professor Faculty of Management Studies, University of Delhi, Delhi, 110007, Email id: kalsieanjala@gmail.com
2Assistant Professor Shaheed Sukhdev College of Business Studies University of Delhi, Email: phd_ashima.13@fms.edu
Online published on 24 January, 2018.
The objective of this paper to find out the justified price multiples of HUL, ITC Ltd and Nestle India using prices calculated on the basis of absolute valuation techniques like dividend discount models and free cash flow models and comparing these with the current multiples of these companies. The inputs were taken from the annual reports of the above companies for understanding the outlook on the companies ’business and the expected trends going forward. Based on all these, the justified multiples using FCF and DDM were calculated and compared with the current market multiples of the companies.
Dividend Discount Models, Free Cash Flow Models, Current Multiples, HUL, ITC and Nestle
