Did I correctly calculate the stock valuation methods in my Excel sheet? The first one is the DVM COnstant Growth Rate Valuation method. The second is the CAPM rate of return. The third is the Free Cash Flow to Equity Valuation and the Third is the Price to Earnings method valuation. I just want to make sure my calculations are correct. I am having trouble. Any advice would be most helpful.
FIN-340 Milestone Calculations.xIsx - Excel Joshua Land Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do to Cut Calibri 11 VA A ab Wrap Text General Normal 2 Normal Bad Good Neutral BB Copy BIU - B - DA BEE E Merge & Center * % " Conditional Format as Calculation Check Cell Explanatory ... Followed Hy... Hyperlink Format Painter Formatting * Table KIKI EX AutoSum ~ AT Insert Delete Format Fill - Clear Sort & Fir Filter - Sel Clipboard Font Alignment Number Styles Cells Editing X V B C D E H K Name of Stock Valuation Method Last Year Dividends Dividend Growth Rate Projected Next Year Dividends Required Rate of Return DVM Model Constant Growth Stock Valuation (wb1, g1) Equals MMM DVM Constant Growth $5.44 15.109 $6.26 9% Equals = 6.26/9%-15.19 $69.40 KO DVM Constant Growth $1.56 8.30% 1.69 9% Equals = 1.69/9%-8.3% $18.69 GF DVM Constant Growth 0.44 9.70% 0.53 9% Equals = .53/9%-9.7% $5.79 Name of Stock Risk Free Rate Beta Expected Market Return (CAPM) Excel Forumla Formula CAPM Expected ROE MMM 0.75% 0.98 9% 3.146875% Equals = ((.75+.98)*(9%-.75)) = 8.146815% 3.15% 8.83500% KO 0.75% 0.66 9% 5.506875% Equals = ((.75+.98)*(9%-.75%)= 5.506875% 5.51% 5.19500% GF 0.75% 1.12 9% 9.301875% Equals = ((.75+1.12)*(9%-.75%)= 9.301875% 9.30% 8.83500% Name of Stock Valuation Method After Tax Earnings Depreciation Investments in Working Capital Investments in Fixed Assets Free Cash Flow Expected Market Return # Outstanding Shares Forumla (k, 11) IBM FCF to Equity Valuation $8,723,000,000 ,480,000,000 $3,395,000,000 $554,000,000.00 $9,254,000,000 9% 889,870,000 Equals =(9254000000/9%)/889870000 = $115.55 Name of Stock Risk Free Rate Beta Expected Market Return (CAPM) Excel Forumla Formula CAPM Expected ROE IBM 0.75% 0.86 9% 7.156875% Equals = ((.75=.86)*(9%-.75%)=7.16% 7.16% Name of Stock Valuation Method Last Years Earnings # of Outstanding Shares Earnings Per Share Industry Average P/E Ratio Formula and Price to Earnings Valuation (wb1, g16) BAX Price to Earnings $1,624,000,000 511,120,000 $3.18 $36.09 Equals = $3.18*$36.09 = $114.67 Name of Stock Risk Free Rate Beta Expected Market Return (CAPM) Excel Forumla Formula CAPM Expected ROE (wb1, g18) BAX 0.75% 0.75 6.249375% Equals = ((.75=.75)(9%-.75%)= 6.25% 5.25%