Merck & Co., Inc. (MRK) NYSE - Nasdaq Real Time Price. Currency in USD Add to watchlist 89 Visitors trend 2w10w 1 9M 1 81.05 -0.06 (-0.07%) ASOTZETUPES 1. Market open. Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options Currency in USD Revenue Estimate Current Qtr. (Dec 2020) Next Qtr. (Mar 2021) Current Year (2020) Next Year (2021) No. of Analysts 11 2 17 16 Avg. Estimate 12.65B 12.71B 48.16B 51.92B Treasury Yield 10 Years (TNX) NYBOT - NYBOT Real Time Price. Currency in USD Add to watchlist WSJ MARKETS English Edition Print Edition Video Podcasts Latest Headlines 0.958 -0.014(-1.4403%) As of 9:43AM EST. Market open. P/E RATIO YEAR AGO 4198 25.45 24.02 ESTIMATE 8263 31 33 25.15 Summary Chart Conversations 11/06/20 Russell 2000 Index NASDAQ 100 Index 36.81 S&P 500 Index 39.81 Trailing 12 months Forward 12 months from Birinyi Associates, updated weekly on Friday, PE data based on as-reported earnings: estimate data based on operating earnings Source: Birinyi Associates Historical Data Options Previous Close 0.9720 Day's Range 0.9580 - 0.9580 Open 0.9580 52 Week Range 0.3980 - 1.9490 QUESTION #2 (10 Points) Merck Pharmaceutical - Alpha Calculation Merck & Co., Inc. (MRK) NYSE - Nasdaq Real Time Price. Currency in USD Add to watchlist 89 Visitors trend 2w 10w 1 9M1 81.05 -5.06 (-0.07%) arket open. Summary Company Outlook O Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close 81.11 Market Cap 205.059B 1D 5D 1M 6M YTD 1Y 5Y Max Full screen 88.00 Open 81.87 Beta (5Y Monthly) 0.43 Bid 80.94 x 900 PE Ratio (TTM) 17.90 82.67 81.15 Ask 80.95 x 800 EPS (TTM) 4.53 77.33 Day's Range 80.60 - 82.27 Earnings Date Feb 04, 2021 72.00 52 Week Range 65.25 -92.64 Forward Dividend & Yield 2.44 (3.01%) Volume 2,185,195 Ex-Dividend Date Sep 14, 2020 Oct 12 Oct 22 Nov 2 Trade prices are not sourced from all markets Avg. Volume 8,233,450 1y Target Est 95.58 Fair Value XX.XX Related Research 8 Analyst Report: Merck & Co Inc Market Digest: CAKE, HFC, MRK.... Chart Events Bullish pattern detected Near Fair Value 6% Est. Return doon, Triple Moving Average Crossover Short Performance Outlook Mid 1 Term Term 2W-6W 6W - 9M Long Term 9M- View details View more View all chart patterns P Q R S T U V W Z AA AB AC AD AE AF AG AH 1 1 9MT 2 3 According to the AAPL Data Summary provided: (1) Please calculate the Ri and the Intrinsic Value of AAPL Stock Please calculate the Fair Value of the AAPL stock as its Revenue Growth Rate for the coming year=(329.76-314.24)/314.24 = 4.94% The current Risk Free Rate=0.958% The current YTD market return = 8.63% The D1 forward dividend=$0.82 4 5 ancials Analysis Options 6 Currency in USD 7 1) Next Year (2022) $117.90 CAPM Equation: 8 Ri Rf + Beta(Rm - Rf) Today's AAPL Stock Price Risk-Free Rate 92 29 = 0.958% 8.63% = 10 B 329.76B Market Return Rate Beta Ri Rf Rm Beta Expected Return on this Invested Asset Risk-free Rate (from Government Bonds) Market Rate of Return Beta of Security; Sensitivity of Expected Asset Return to the Expected Market Return 11 1.35 = 2RKETS P/E of AAPL = 35.93 13 Podcasts Latest Headines = 39.81 Ri 958%+1.35(8.63%-0.958%) 11/06/20 $0.82 14 15 11.32% P/E of S&P 500 Forward Dividend D1 Company's Revenue Growth Rate P/E RATIO YEAR AGO 41.98 25.45 2402 ESTIMATE 82.63 31 33 25.15 4.94% 36.81 16 Dividend Growth Model: 39.81 V = 17 es updated weekly on Friday 18 timate data based on operating earnings (D.*(1+g))/(k-g) 19 Stock Valuation (Intrinsic Value) 20 21 22 23 (2) Based on the today's price of AAPL stock of $117.90 and your calculated Intrinsic value of AAPL stock: Amount Dollars AAPL Over-valued? Why is it that AAPL so over-valued? 24 25 26 27 28 29 30 31 32 33 34 Merck & Co., Inc. (MRK) NYSE - Nasdaq Real Time Price. Currency in USD Add to watchlist 89 Visitors trend 2w10w 1 9M 1 81.05 -0.06 (-0.07%) ASOTZETUPES 1. Market open. Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options Currency in USD Revenue Estimate Current Qtr. (Dec 2020) Next Qtr. (Mar 2021) Current Year (2020) Next Year (2021) No. of Analysts 11 2 17 16 Avg. Estimate 12.65B 12.71B 48.16B 51.92B Treasury Yield 10 Years (TNX) NYBOT - NYBOT Real Time Price. Currency in USD Add to watchlist WSJ MARKETS English Edition Print Edition Video Podcasts Latest Headlines 0.958 -0.014(-1.4403%) As of 9:43AM EST. Market open. P/E RATIO YEAR AGO 4198 25.45 24.02 ESTIMATE 8263 31 33 25.15 Summary Chart Conversations 11/06/20 Russell 2000 Index NASDAQ 100 Index 36.81 S&P 500 Index 39.81 Trailing 12 months Forward 12 months from Birinyi Associates, updated weekly on Friday, PE data based on as-reported earnings: estimate data based on operating earnings Source: Birinyi Associates Historical Data Options Previous Close 0.9720 Day's Range 0.9580 - 0.9580 Open 0.9580 52 Week Range 0.3980 - 1.9490 QUESTION #2 (10 Points) Merck Pharmaceutical - Alpha Calculation Merck & Co., Inc. (MRK) NYSE - Nasdaq Real Time Price. Currency in USD Add to watchlist 89 Visitors trend 2w 10w 1 9M1 81.05 -5.06 (-0.07%) arket open. Summary Company Outlook O Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close 81.11 Market Cap 205.059B 1D 5D 1M 6M YTD 1Y 5Y Max Full screen 88.00 Open 81.87 Beta (5Y Monthly) 0.43 Bid 80.94 x 900 PE Ratio (TTM) 17.90 82.67 81.15 Ask 80.95 x 800 EPS (TTM) 4.53 77.33 Day's Range 80.60 - 82.27 Earnings Date Feb 04, 2021 72.00 52 Week Range 65.25 -92.64 Forward Dividend & Yield 2.44 (3.01%) Volume 2,185,195 Ex-Dividend Date Sep 14, 2020 Oct 12 Oct 22 Nov 2 Trade prices are not sourced from all markets Avg. Volume 8,233,450 1y Target Est 95.58 Fair Value XX.XX Related Research 8 Analyst Report: Merck & Co Inc Market Digest: CAKE, HFC, MRK.... Chart Events Bullish pattern detected Near Fair Value 6% Est. Return doon, Triple Moving Average Crossover Short Performance Outlook Mid 1 Term Term 2W-6W 6W - 9M Long Term 9M- View details View more View all chart patterns P Q R S T U V W Z AA AB AC AD AE AF AG AH 1 1 9MT 2 3 According to the AAPL Data Summary provided: (1) Please calculate the Ri and the Intrinsic Value of AAPL Stock Please calculate the Fair Value of the AAPL stock as its Revenue Growth Rate for the coming year=(329.76-314.24)/314.24 = 4.94% The current Risk Free Rate=0.958% The current YTD market return = 8.63% The D1 forward dividend=$0.82 4 5 ancials Analysis Options 6 Currency in USD 7 1) Next Year (2022) $117.90 CAPM Equation: 8 Ri Rf + Beta(Rm - Rf) Today's AAPL Stock Price Risk-Free Rate 92 29 = 0.958% 8.63% = 10 B 329.76B Market Return Rate Beta Ri Rf Rm Beta Expected Return on this Invested Asset Risk-free Rate (from Government Bonds) Market Rate of Return Beta of Security; Sensitivity of Expected Asset Return to the Expected Market Return 11 1.35 = 2RKETS P/E of AAPL = 35.93 13 Podcasts Latest Headines = 39.81 Ri 958%+1.35(8.63%-0.958%) 11/06/20 $0.82 14 15 11.32% P/E of S&P 500 Forward Dividend D1 Company's Revenue Growth Rate P/E RATIO YEAR AGO 41.98 25.45 2402 ESTIMATE 82.63 31 33 25.15 4.94% 36.81 16 Dividend Growth Model: 39.81 V = 17 es updated weekly on Friday 18 timate data based on operating earnings (D.*(1+g))/(k-g) 19 Stock Valuation (Intrinsic Value) 20 21 22 23 (2) Based on the today's price of AAPL stock of $117.90 and your calculated Intrinsic value of AAPL stock: Amount Dollars AAPL Over-valued? Why is it that AAPL so over-valued? 24 25 26 27 28 29 30 31 32 33 34
