Attached is the valuation and the Complete Financial Reports for Verizon from Wharton that I worked on and sent to the Professor last night. I followed the method he shared in the Zoom Session but for some reason the valuation is coming out higher than Verizon's current actual stock price. I need help evaluating my numbers versus actual stock prices of $56.92... my calculations come to $111.55 my evaluation is in red and the correct number in yellow on the last picture

DAE Valuation* EBIT ( 1 - 7 ) 19 , 983 , 369\\ S 20 , 482 , 953| S 1 , 519 , 903\\ S 23 , 753 , 946\\ _- WACC ( CD 20 , 295 , 027\\ S 2.2 , 057 , 900 22 , 609 , 348\\ 3 , 174 , 581\\ 24 , 347 , 795\\ 24 , 956 , 490\\\\ `emminal Year 5 . 580 . 41 Abnormal Earnings 10 , 190 . 1 16\\ 5* 9 , 749 , 246\\\\ 10 , 733, 708\\ 5\\ 1 ,290 , 160\\ 5\\ 11 , 859 , 790\\ 5 9 .6 1 4 . 97 4\\ 9 . 569 . 448\\ 7: 552 , 4 4 7\\ 9. 557 . 181 9. 576 . 625\\ 5 , 353 . 057\\ 1 . 082 . 93 \\Terminal AE* 9 , 556 , 519\\ S 9 , 440 , 412| } 9 , 312 , 405\\ S 9 , 174 , 013\\ S 9 , 026 , 626\\\\ 8 , 884 , 513| } 8 , 729 , 668\\ 8 , 569 , 843\\ 8 , 411 , 393\\ 731 , 268 . 026 401 , 663 , 56 PV Of AE* | + Capital Invested 40 2 , 1 60 , 254\\ + PV Of Che Capital in YI 10 ( 49 , 708 , 447 )\\ This reconciles the assumptions on stable growth , ROC and Capital Invested* | = Firm Value\\ \\538 , 933 , 507\\ Indicated Price per share 130.56\\ Cost of Equity \\ROC 9. 25% \\\\ \\Capital Invested 18.87%| $ 105 , 873 , 000 | $ -19.43% 9.25%| 105 , 397 , 251\\ S 0 . 0196 \\ 10 . 6196\\ 9. 25%0\\ 104 , 917 , 487\\ S 104 , 433 , 647\\ S 1 . 2.2%0| 103 , 945 , 670| $ 103 , 453 , 491\\ S 103. 269. 700 | $ 22. 99 90 103. 320. 879\\ 23.52%|_ 103 , 531 , 079\\ S _24 . 04%0 \\\\ 103 , 820 , 889\\ S 218 .50 % 11 , 707 , 275\\ ( Adjusted to reflect terminal ROC ) Calculation of Capital Invested Initial\\ 105 , 873 , 000| $ 105 , 873 , 000 | $ 105 , 397 , 251| S \\104 , 917 , 487| $ 104 , 433 , 647 | S 103 , 945 , 670 | $ 103 , 453 , 491 | 5\\ 13, 269 , 700 | 5\\ 103 , 320, 079|} 103 , 531 , 079 \\ S 103 , 820 , 889 + Net Cap Ex + Che in WC ( 393 , 960 ) | 5 - ( 81 , 789 )| 8 ( 395 , 930 ) | S ( 83 , 834 )| 8 ( 397 , 909 ) | $ ( 399 , 899 )| S ( 88 , 078 )| $ ( 401 , 898 ) | 5 _( 91 , 254 ) | $ (92 . 537 )\\ 146 , 029 \\ S 307 , 423\\ 389 , 462 | } \\Ending] 105 , 873 , 000| $ 105 , 397 . 251| 8 _104 , 433 . 647\\ S _103 , 945 , 670| 8 103 , 453 , 491| 8 103 , 269 , 700\\ S (94 , 85 1 )\\ ( 97 , 22 2 )\\ (99 . 65 387 , 687\\ 104 , 917 , 487\\ S 103 , 531 , 079| 8* 103 , 820. 889 | 8\\ 104 , 106 , 432 Cumulated Cost of Equity 106 .63% | 113. 70% \\\\ 121 . 249 \\ 129 . 28%\\ 137 .85 % | 146 . 77 %0\\\\ 56. 04% \\\\ 165. 66% \\\\ 175. 61%\\\\ 185. 88%\\ Page 1DAROE Forecast ROE 0. 269295975| 0. 217 46573| 0. 1 83087 18| 0 . 15862 26 | 0 . 1403 288 4| 0 . 1 2 61 3647 | 0 . 1 1 4 80836 | 0 . 105 5 5946| 0 . 0978676 | 0. 091 37 194 | ~\\ Terminal Year\\ Cost of Equity 9 . 25 %| 9. 25 %| 9. 25%| 9. 25 % \\\\ 9 . 25 % | 9. 25% | 9. 25 % | 9 . 25 %| 9. 25 % | 9. 25%| Abnormal ROE 7. 68 %0 2. 50 %0| 9. 06 %/01 16. 18%| 6. 95 %| 6. 61 % 4. 78% | 3. 36%0\\\\ 0. 5 4%| 0. 1 1 %| Present Value of AROE 10 . 47 %| 4 . 64 %| 3. 07 %| 1. 98 % | 2 . 23 % 1 . 20 %| 1 . 37 % | 0 . 64%| 0. 249/01 -0 . 05 9/01 - 0. 7 7 90 19 50% / Total DAROE 14 4. 83 %0 Beginning Equity $ 54 , 7 10, 000 Firm Value $ 79 , 236 , 086 Indicated value per share* 19 .19\\Buffett Valuation Worksheet ( January / February 1998 , Computerized Investing , www . dali . com ) Enter values into shaded cells Date of Analysis : $ 12 /31 /18 Current Stock Data `any : `.Verizon Communica! !! !.. Seven Year Averages Return on Equity : 47 .6%| Price : $ $56 . 22\\ Payout Ratio : 143 .9 5 : 183 . 76* PIE Ratio- High : 35 . 2\\ DPS : 1$2 . 3 7* P/ E Ratio - Low : 26 . 9\\ BVPS : $13 . 25` PLE Ratio : 31 .0 PIE : 15 .07 Sustainable Growth - 20 . 9 90 Earnings Yield : 6 . 7% (ROE* ( 1 - Payout Ratio ) )\\ Dividend Yield : 4 . 290 PIBV : 4 .2 GV't Bond Yield : : 2 . 79 . ......_. Pulled on 2 / 22 / 2019 Historical Company Data PIE Ratio* DVPS _High` _High " you Year ? 20:201 _ 40 . 25 ; _ 47 .4 6 Year 6 2.08 ! _ 30 . 3 2 33 . 29 : \\54 . 31 1 W /Nj O'O: _ _ : 58 | 0'` \\2 . 8 to fix coin . . Year 4\\ 2 . 14 ] 3 . 2 ! !` 2 . 22 { 53 .6 6 { . _ 45 .09} 2 . 2 7 ; $50 . 86 ! 1.1 .6 [ONIT ON Gloom . IN / CT / w/20 : 00 0100| 20 OO | ~ : 4 8:0'N Year 2 10. 94 . .56 .95 % 43 .79\\ 10100 10 Year !` _ __. 3. 76 :` 2.37 !` 54 . 83 ; .... 13 . 25 :` _ 61.58 ;.. 4609 1 16.4| DPS Annually Compounded Rates of Growth ( 7 year ) BVPS High Price* Low Price Annually Compounded Rates of Growth ( 3 year ) 2 . 7% - 11 .3% 6. 3% _[ Near 1 / Year 8 ) ~ ( 7 17 71 -1 5 . 2% - 4. 9% 2 . 3% 4 4 . 8% 6 . 6% 6 . 6% " \\[ Near 1 / Year 4 ) " ( 1 13 / 1 - 1 Projected Company Data Using Historical Earnings Growth Rate Year EPS DPS Current _ $3 . 76 ; 31 . 46 Earnings after 10 years* Year !' \\4.65 ; Year 2 213 . 64 Sum of dividends paid over 10 years* Year 3\\ - - Year 4\\ 10 . 23| " 72. 65"? $976 . 1 1 Projected price ( Average P /E* EPS )\\ Year 5\\ 10.88 ;\\ 15 .65 ! $1 , 189 . 75 Total gain ( Projected Price + Dividends ) Year 6\\ 13.45 !\\ 19. 35 % Year ?` _16 .63 !\\ 35 . 7% Projected return using historical EPS growth rate* _20: 57 :1 23.93 | Year Or__^ 29.59 ; [ ( Total Gain / Current Price ) " ( 1 /10 1 1 - 1\\ Yearg _25 .44 | 36.60 \\_ _ _ _ S ! . Year 10 Projected Company Data Using Sustainable Growth Rate* Year BVPS EPO DPS Current* Year 1\\ 0. 60 Earnings after 10 years ( BVPS* ROE ) $3: 072 - - - - - - - - - - - - - - - ^ 5 .68 | 40 . 15 Sum of dividends paid over 10 years* Year ? . . .. ...._. ` \\- - - - - ^#^ Year 3 - 3 - - - - -^ _ Year 4.` Year 5*" 2 .47 !) $18 . 77 Projected price ( Average P/E* EPS ) $58. 92 Total gain ( Projected Price + Dividends )* Year 7^_ 2:57 : . 22 | .. 2 . 2 2 ! 0. 5% Projected return using sustainable growth rate* Biw; vit Year 8] * 7.76 ; 1. 39 ? [ ( Total Gain / Current Price ) ~ ( 7 / 10 71 - 1\\ Year 9 0 . 76 ! - - - 2 _ _^ 0 . 6 0 . . ._._. 0 . 87\\ 1 . 10 ;Page 1 Current Inputs INPUTS FOR VALUATION* _Assumptions* {ex current capital invested in the firm = ` the current depreciation`` Book Value of Equity + Book Value of Debt ) `One Term Debt $ 105 8 730.00 - Nothing listed for Debt ( long-term ) due in one year for 2018\\ \\Enter the change in Working Capital in last year = 20\\ you might try an average of the prior 3 years )\\ current assets - current liabilities for the most recent year ) - ( current assets - current liabilities for the prior year Cook average of 2016 - 2018\\ \\Enter the value of curent debt outstanding = \\Enter the number of shares outstanding =\\ 4 - 128. 0.010 .00 Valuation Current Stock Price for Verizon High Growth Period \\ our Inputs \\Enter the growth rate in revenues for the next 5 years =\\ .50%| Yahoo Finance has 2 . 4% and average of past & years is 2 .6% so I went with 2 .5 % \\What will all operating expenses be as a 96 of revenues in the fifth year ? \\How much debt do you plan to use in Financing investments ?` 80 . 90%6\\ ( Operating expenses include depreciation : This is equal to ( 1 - Pre-tax Operating Margin) ar average Taken* 100 %\\ (you might try an average " average of the prior 3 years ) \\Enter the growth rate in capital expenditures & depreciation You might try an average of the prior 3 years ) Past 6 years have been over 10.0 % \\Enter working capital as a percent of revenues 9%6\\( current assets - current liabilities ) / Revenues\\ Used average of past 9 years_ Used 2017 and 2018 average \\Past 3 years is . 3 96 50 essentially the same \\Enter the tax rate that you have on corporate income* " might try an average of the prior 3 years ) Average of 2016 - 2018 at 39 . 196 - Going with 22% per Professor's explanation* \\What beta do you want to use to calculate cost of equity =\\ According to Yahoo Finance ( 3 * Monthly ) current Long term bond rate =_ 128 - 2014 average |Left as is Enter the market risk premium you want to use = \\ . 50%6\\ > > > > 20, 204 \\EBIT \\_ 24 . 994 , 833| } _ 25 . 619 . 704\\ S 26 . 260 , 196| $ 26 . 916 , 701| $ 27 .589 . 619| S _28 , 279 . 359\\ S _28 . 986 , 343| $ 29 , 711 . 002| S 30 . 453. 797\\ S _ 31, 215 , 121 | 5_ _ $ 1`95 , 499\\ \\Tax Rate* 2.2. 00 96\\ - 22.00 96 \\\\ - 22.010%\\\\ _ 22.00%\\ -_2 2. 0096 \\\\ -_ 2 2.010%6 | _22.00%\\ _22.0.0%\\\\ -2 2.0090\\ \\Ending equity \\EBIT ( 1 - 1 ) 74 , 205 , 970| } - 2 2.00%\\ _94 , 189 . 3.39\\ S (14 . 672 , 292| $ 135 . 667 . 319| $ 157 , 187 . 222| S_ _ 179, 245 , 122| 5_ 201 . 854 , 470| $ 225 . 029 . 051\\ S 248 . 782 . 997\\ S _ 213 , 130. 792| 5 _298. 087 , 281\\ _ 19 . 495 , 970| S 19 . 983. 369\\ S 20.482 , 953| $ 20 . 995 , 027\\ 5 21 , 519 . 903| 5\\ _22 , 057 . 900\\ S _ 22. 609 , 348| $ 23 , 174 . 581| 5 23 . 753. 946| S_ _24 , 347. 795\\ S` _24 . 956 , 490| \\+ Depreciation_ \\$ 17 . 380 ,000| S 16 . 98 8 . 000\\ S _17. 466 , 900| S 17 . 55 4 . 235| $ 17.6 4 . 2 . 0.06| $ 17 . 730 , 216| S _17 , 158 , 305\\ S _ 17. 818 . 867\\ S _17 . 979 , 237\\ $ 18 , 212 . 967\\ S 18 . 522 . 587\\ S .91 1 . 501| 5 19. 384 , 350\\ \\ - Capital Expenditures 17. 072. 940\\S _17 . 24 4 . 096\\ 5 17 ,39 _ 17 , 3:30 . 317\\ } 17 , 8 87 . 982| $ 18 . 358 . 996| $ 18 . 830 . 010| S 19 . 301 . 024\\ S 19 . 772 . 037\\ \\S OLT \\- Change in WC\\ [= FCFF* 19 . 887 , 800| } _$ 1 .789)| 5 _20 .459 , 118\\ S ( 83 . 834)| 3\\ 20 . 962 . 717\\ S ` 21 , 478 , 866| S _($8 . 078)| 5` 22 ,007 . 880| S _20.280)| 5_ 22 , 550 .079\\ S - 02. 537 )| S_ 22 , 793 , 139\\ S 2} -_( 94.851)|} _(07 . 22 2)\\5\\ 23 , 543 . 745\\ S _24 , 057 . 985\\ S 24, 670 . 946\\ Terminal Value ( in 1 05 )\\ \\754 , 857 , 31 1\\ - COSTS OF EQUITY AND CAPITAL\\ \\Cost of Equity\\ _9.25%\\\\ _9.25% \\\\ \\Proportion of Equity* 0 . 0 0 96\\ 0 . 00 96\\\\ _0 . 00 % \\After -tax Cost of Debt 6 .6396\\ 6 . 47 96 \\ \\Proportion of Debt 100. 0 90 |_ 6.6396\\\\ \\Cost of Capital 6. 63. 96\\ 100 . 00 90 | 100 . 00 90 | 100 . 00 90 | 6. 6390|_ _6 .639\\ \\6. 6390 100. 00 90 | Cumulative WACC* 106 . 63.960| 1 13 . 70 %| 121 . 2490 129 . 28 %\\ 137 . 85 %6\\ 146 . 77%| 156 . 0490 165 . 66 %6\\ 175 . 61 96\\ 185 . 88 90 \\Cumulative Cost of Equity\\ 109 . 25 %6\\\\ \\Present Value 19 , 187 . 019\\ S _119.36 %6 \\\\ - 130 . 40%6 \\\\ - 142 .46 %|_ _18 , 436 , 936\\ 5 17 , 716 , 30 4| $ 17 . 023 . 959\\ S 155 .6396\\_ 16 , 358 . 784| } 170 . 03 916\\\\ _15 , 529 , 717\\ 5 14 , 818 . 503| } 14 , 212 . 126\\ S 2.21 .7196\\_ _13 .69 9 . 739\\ } 242 .2296\\ 419 . 366 , 801 FIRM VALUATION* \\Value of Firm* 506 , 349 , 888\\ \\_ Value of Debt 105 , 873 , 0 0* \\Value of Equity 460 , $76 , 88 8 \\Value of Equity per Share 111 .55\\ \\Value of Firm by year* _56 6 . 349 . 888\\ S _ 583 . 439 . 768\\ 5 601 . 159 , 107\\ 5 6 19 .537 . 090| $ 638 . 60 4 . 5 19| $ 658 . 393 . 919\\ 5 678 . 225 . 202\\ S - 2025_ 2020_ _697 . 952 . 068\\ S_^ \\S Value of Debt _566 , 349 . 88 8 . 44| 5_ 583 . 439 . 768\\ 5 60 1 . 159 , 107\\ 5 6 19 . 537 . 090| $ 67 _638 . 60 4 . 519\\ $ 658 . 393 . 919\\ 5 678 . 225 , 202| 5 697 . 952 .068\\ S` _717 . 416 , 120\\ 5\\ 136 . 446 , 157\\ Page"