8. Compare the stock prices from the two methods to the actual stock price. What recommende tions can you make as to whether clients should buy or sell Columbia stock based on your price estimates? 9. Explain to your boss why the estimates from the two valuation methods differ, Specifically, ad. dress the assumptions implicit in the models themselves as well as those you made in preparing your analysis. Why do these estimates differ from the actual stock price of Columbia? Columbia Sportswear Co COLM Morningstar Rating Rating as of Feb 21, 2020 Quote Stock Analysis News Price vs Fair Value Trailing > Show Full Chart > Market Closed $90.89 0.69 0.75% 93.10 Previous Close 91.58 W 90.06 10a 12p USD NASDAQ | Last close prices updated as of Feb 21, 2020, 4:15 PM EST | BATS BZX Real-Time Price Quote V Bid/Size 88.00x1 Ask/Size 90.90x25 Day Range 90.20 - 91.48 Volume / Avg 450.6/516.5 Year Range 87.60 - 109.44 Forward Div Yield 1.14% Market Cap 6.1374 Bil Investment Style Mid Core Price/Sales 2.05 3 4 5 1. Current Stock Price 2. Current Annual Dividend Per Share Amount 3. Total Number of Share Outstanding 4a. Return on Equity 591.43 $1.04 67,530,000 Average 11.36% 2018 15.87% 2017 6.36% 2016 12.13% 2015 12.31% 2014 10.12% 4b. Average Divident Payout Rate Average 30.18% 2018 23.38% 2017 48.43% 2016 25.08% 2015 24.98% 2014 20.04% 8% 0 2019 $1.04 3% 125.5-year Divident Growth Rate 13 14 a/b. Excel Timeline 15 Dividend 16 6c/d Long-Term Growth Rate of 3% 17 Cost of Equity 18 Price for year four P4 19 Be Current Price (PO) 2020 $1.12 2021 2022 $1.21 2023 $1.41 $1.31 2024 $1.52 $30.47 $26.55 2018 2015 21 22 23 24 25 26 7 a EBITDA (line 21 Pretax income?) Dep & Amort (Cash flow line 7) EBIT Sales (Income stotine 3 Total revenue?) EBIT/Sales 419,006,000 103,461,000 315,545,000 3,005,209,000 0.1049993528 2017 2016 2014 5 year average 360.717.000 206,734,000 256,898,000 247.319.000 198,521,000 58.230,000 59,945,000 60,016,000 56,521,000 54,017.000 302,487,000 206,780,000 196,882,000 190,798,000 44,504,000 2,802,326,000 2,466,105.000 2,377,045,000 2.326,180,000 2,100,590,000 0.107941403 0.08385247181 0.06282636035 0.08202202753 0.06878210127 0.005007398 291,596.000 281,394,000 279,650,000 291.687.000 291,563.000 28 Net Property Plant & Equipment (BS line 21) 287178000 + Income Statement - Cash Flow Sheet1 - Balance Sheet Sheets Type here to search