Chose two stocks .Each stock must pay dividend, or must have positive earning, or must have positive free cash flow so that you can use any two pricing models you want.
1-Calculate discount rate for two stocks you choose.
https://i.investopedia.com/inv/dictionary/terms/ddm.gif
2) Obtain growth rates. Calculate sustainable growth rate for the stocks you chose. Obtain growth rates for earnings, dividends, and book value from the section of “ANNUAL RATES” Value Line’s Chart. You may obtain FCF from MarketWatch (https://www.marketwatch.com/) and calculate growth rates for FCF. Compare the sustainable growth rate you calculated and the growth rates you obtained from Value Line or finance yahoo or market watch. Choose one of them for your stock pricing. Explain why.
3) Calculate prices for two stocks you chose based on two different models. preferred models are ddm and dcf.
4) Compare your price estimates with current market prices, and determine whether the stock price is under- or overvalued. And do transactions based on your pricing. Enter the relevant information to your trader’s log. show the formulas you used and the numbers in the formula. You can Pick stocks straight off the S&P 500, then you can use the index’s 52 week return as your market risk premium. For the risk free rate I used 3 month T-bill, which is at .03% briefly , you have to find two stocks and price them on basis of dividend discount model and discounted cash flow you could find stocks off yahoo finance or market watch . formulas could be found on investopedia .