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 dividend discount model?
What is Disney stock's intrinsic value using the market multiple method?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started