Question
Conduct a fundamental analysis of Severn Trent PLC. The analysis must employ both P/E and Dividend Discount Model (DDM) valuation approaches. a) You are required
Conduct a fundamental analysis of Severn Trent PLC. The analysis must employ both P/E and Dividend Discount Model (DDM) valuation approaches.
a) You are required to demonstrate your forecasting process, backed up by relevant data sources and references, on (1) the earnings per share for your chosen company at the end of March 2022, (2) the price of this chosen share at the end of March 2022 using a reasonable P/E multiple.
b) You are required to demonstrate the forecasting process by showing your prediction, backed up by relevant data sources and references, on (1) the growth rate for your chosen company for the coming 5 years from April 2021 to March 2026, and (2) the price of this chosen share at the end of March 2022 by using the DDM valuation approach.
Based on your analysis, summarize your recommendation to your potential investment clients
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