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At the end of 2021, ABC company had total sales $22 million. They had 1.3 million shares outstanding. We expect sales growth to be
At the end of 2021, ABC company had total sales $22 million. They had 1.3 million shares outstanding. We expect sales growth to be 6% per year for the next 3 years. After that we expect sales growth to be 3% into perpetuity. The company's profit margin is 15% and the company has a return on equity of 25%. The cost of equity is 12%. Forecast: 1) Sales per Share 2) Profit (earnings per share) 3) Free cash flow to equity (per share) for the next 3 years, along with a terminal value beyond the three years. 4) Determine the intrinsic value of the stock. 5) How much of the intrinsic value comes from our estimate of future growth (PVGO)?
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Sales per Share Sales per Share Total Sales Number of Shares Outstanding Sales per Share 22000000 1300000 Sales per Share 1692 Profit Earnings per Sha...Get Instant Access to Expert-Tailored Solutions
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