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Assignment #1: Calculate valuation metrics for the companies below. PG AMZN JNJ SNOW Assumptions: Price / Share Net Income, Current Year Forward 5 Year Growth
Assignment #1: Calculate valuation metrics for the companies below. PG AMZN JNJ SNOW Assumptions: Price / Share Net Income, Current Year Forward 5 Year Growth in EPS Free Cash Flow Fully Diluted Shares, Current Year Net Cash, Current Year EBITDA, Current Year $138 14,465 6% 15,416 2,606 (16,350) 20,807 359628 $3,234 24,709 40% 25,437 513 11,201 43,218 1659042 $138 20,939 5% 18,252 2,633 (748) 27,552 363354 $265 (282) 50% (151) 349 (141) (278) 92485 Calculate: P/E PEG Ratio EV / EBITDA FCF Yield How do you explain a huge valuation and negative valuation ratios? a) investors have made a mistake b) the negative ratios are meaningless because you are dividing by negative numbers c) investors predict sizable growth over the next 5 years that will turn profits and cash flows largely positive d) bandc
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