Estimate the fair market value of SJI common stock and compare it with the market price. Using sources such as Yahoo Finance and Value Line (available on the course site) for growth rates, you will use the perpetual dividend discount model and the CAPM to develop a RANGE of estimates of the what the price of one share of SJI stock should be. You should consider different growth rates such as the predicted EPS and predicted from Value Line as well as the 5-year predicted growth rate in EPS from Yahoo. For the discount rate, you should use the estimated required cost of common equity that you did in your last project that was used to obtain the WACC.

Also, based on your estimates compared with the latest stock price, is SJI stock over- or under-valued?