Valuation question in General/real world

Hi, I am a level 2 candidate and I have a general question on valuation.

If I value a company using the FCFF I can essentially get the value of the firm. Let say this company pays a dividend, and I use the dividend discount model to value the same company, I will also get a “value” for this company.

But this is a big issue because a company can have hundreds of millions of free cash flow, but only pays a couple of million in dividends. So my question is how does this work in real life? How can I arrive at two very different values, and call it the “value of the company”???

Please help

This is the instrinsic value of equity from the minority shareholder perspective.

If you use FCFE valuation approach, that gives you the equity value from a takeover/control perspective

Makes sense, thank you fino.

My follow-up question is - is this how analysts do it at Wall Street? When they publish a buy/sell recommendation report they are tailoring this from the shareholder’s perspective, v.s a merger acquisition they are looking at it from a take-over/ownership perspective?

Then how is it that an analyst can come up and give a price valuation for shareholders for a company say tesla? because the company doesn’t pay a dividend and is also trading at an incredibly high P/E. Then where is this type of valuation for shareholders coming from?

Appreciate your professional insight!