Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the below compare the forecasted price with the actual price and explain why the stock is underpriced or overpriced. Discuss the rationale for

Based on the below compare the forecasted price with the actual price and explain why the stock is underpriced or overpriced. Discuss the rationale for the differences between the forecasted stock value and actual stock value based on the free cashflow valuation (figure 1) and company multiples (figure 2).

Figure 1:

image text in transcribed

Figure 2:

image text in transcribed

DCF VALUATION EnterpriseValue(+)CashandMarketableSecruitites()DebtEquityValueSharesOutstandingIntrinsicValueCurrentPriceUpsideBuY/SELL$124,785,770,364.84$15,959,000,000.00$57,635,000,000.00$83,109,770,364.841780000000$46.69$98.5952.64%sell INTRINSICVALUE = SECTOR AVG. PE RATIO x DIS EPS 46.69=26.991.73 DCF VALUATION EnterpriseValue(+)CashandMarketableSecruitites()DebtEquityValueSharesOutstandingIntrinsicValueCurrentPriceUpsideBuY/SELL$124,785,770,364.84$15,959,000,000.00$57,635,000,000.00$83,109,770,364.841780000000$46.69$98.5952.64%sell INTRINSICVALUE = SECTOR AVG. PE RATIO x DIS EPS 46.69=26.991.73

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Corporate Finance

Authors: William L. Megginson, M.D. Lucey Brian C., Scott J. Smart, Scott B. Smart, Bill Megginson

1st Edition

184480562X, 9781844805624

More Books

Students also viewed these Finance questions