Question
DISNEY'S NUMBERS Use the following information on Disney to answer the case questions. Disney's current stock price is $113.00 per share. The average growth rate
DISNEY'S NUMBERS
Use the following information on Disney to answer the case questions. Disney's current stock price is $113.00 per share. The average growth rate of the company's dividend has been 16.09% from 2002 through 2017. Disney's return on equity is 19.5% and the company retains approximately 75.7% of its profits while paying out the remaining 24.3% in dividends. The company's stock currently trades at 16.27 times its current year earnings estimate of $6.96 per share. Analysts expect the company to earn $7.36 per share in 2019 and $8.24 in 2020. Disney's peers engaged in movie making trade at 19.6 times their current year earnings estimates while peers in parks and resorts trade at 19.2; media and broadcasting at 17.0 and consumer products at 19.1.
What is Disney stock's intrinsic value using the constant growth model?
What is Disney stock's intrinsic value using the multi-stage growth model?
What is Disney stock's intrinsic value using the dividend discount model?
What is Disney stock's intrinsic value using the market multiple method?
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