Suppose you are reading an annual report of a listed firm, and you use the NPV model to calculate the valuation of firm using the numbers from the annual report (suppose you are doing the right calculation of NPV). However, you find that the stock price is deviating substantially from your estimation for the valuation. What is NOT a potential explanation in the following list?
A. The cash flow is too volatile to forecast
B. NPV model is wrong in valuing the listed firms
C. You are using an imprecise discount rate
D. The stock price is affected by the investor sentiment
