Question
Compute stock price of Johnson & Johnson (JNJ) Choose at least two stock valuation methods from the list below 1. Constant dividend growth model (you
Compute stock price of Johnson & Johnson (JNJ) Choose at least two stock valuation methods from the list below
1. Constant dividend growth model (you may assume multi-stage growth rates)
2. Multiples (for example P/E)
3. Discounted Cash Flow (DCF)
lWhat is the intrinsic value per share of JNJ?
lRealizing that it is difficult to compute exact number of the intrinsic value, you should also suggest a reasonable range of stock price.
lPlease discuss which model is likely to be the best one for JNJ. Why?
Some useful info here.
https://finance.yahoo.com/quote/JNJ?p=JNJ
https://finviz.com/quote.ashx?t=jnj
https://finviz.com/screener.ashx?v=111&f=sec_healthcare
https://finviz.com/screener.ashx?v=111&f=ind_drugmanufacturersmajor
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