Question
Compare the calculation that you obtained in question 6 with what you would have obtained for the value of the stock using the 'method of
Compare the calculation that you obtained in question 6 with what you would have obtained for the value of the stock using the 'method of comparables' stock valuation approach.
The figures for question 6 are as follows; beta is 0.49, market risk premium is 5.25%, Risk free rate is 2.67%, discount rate is 5.24%, growth rate is -1.52, and stock price is $2.34.
Can you please show formulas of how to get the stock value using the method of comparables stock valuation aswell as the answer and how/why it is different to what i got, comparing the two values.
Thanks in advance :)
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