2. Stock Valuation: INPUT/OUTPUT: Enterprise Value EV = (Shars Outs x Stock Price) + Debt - Cash, EV=EBITDA x Multiple Intrinsic Value (Expected Pr+Div)/CAPM and Div. Disc Model = DIV/(CAPM-Growth) CAPM = Rf + b (Rm - Rf) Intrinsic Value Using CAPM = K = Rf + ( Beta Premium) Risk Free = 1,50% Beta = 1.18x Premium 9.00% Market Return (Rp - Premium) 10.50% Intrinsic Value = VO = ( E(D1) + E (P1)/(1+ D1- $1.80 Analyst Est. $1.64 Average Ear PE Multiple 17.00x Exp (P1)= $90.00 (Avg Target 12.1% VO (Stock Price) $ 81.88 RoR = 12.12% Dividend Discount Model (DDM) Constant-Growth DDM (Gordon Model) VO = D1/(k-a) D1 = $1.80 Expected Equity Return (k)= 12.12% Expected Growth (g) = 10.00% VO (Stock Pice) = 93.40 2. Stock Valuation: INPUT/OUTPUT: Enterprise Value EV = (Shars Outs x Stock Price) + Debt - Cash, EV=EBITDA x Multiple Intrinsic Value (Expected Pr+Div)/CAPM and Div. Disc Model = DIV/(CAPM-Growth) CAPM = Rf + b (Rm - Rf) Intrinsic Value Using CAPM = K = Rf + ( Beta Premium) Risk Free = 1,50% Beta = 1.18x Premium 9.00% Market Return (Rp - Premium) 10.50% Intrinsic Value = VO = ( E(D1) + E (P1)/(1+ D1- $1.80 Analyst Est. $1.64 Average Ear PE Multiple 17.00x Exp (P1)= $90.00 (Avg Target 12.1% VO (Stock Price) $ 81.88 RoR = 12.12% Dividend Discount Model (DDM) Constant-Growth DDM (Gordon Model) VO = D1/(k-a) D1 = $1.80 Expected Equity Return (k)= 12.12% Expected Growth (g) = 10.00% VO (Stock Pice) = 93.40