All 3 approaches calculate the value as the present value of a
series of future cash flows
All 3 approaches require a discount rate
All 3 approaches can be used for multi-stage growth
possibilities
The differences are :
NPV and cash flow approaches use free cash flows, whereas
dividend approach uses dividends
In dividend growth model and cash flow models, the growth rate
cannot be higher the discount rate because the terminal value
becomes indeterminable. However this is not the case with NPV model
because there is no terminal value required
NPV and cash flow models use net income as a base figure and
calculate the cash flows whereas the dividend model usually takes
dividends directly without requiring net income as a base
figure