No other info... I have to solve it with only those info....plz help Assignment Discounted Cash Flow Valuation: Selected company is 3M Company (MMM). Using
No other info... I have to solve it with only those info....plz help
Assignment Discounted Cash Flow Valuation:
Selected company is 3M Company (MMM). Using the facilities of ValuePro (http://www.valuepro.net) for the company that you have selected to study conduct a discounted cash flow valuation. The analysis should explain each variable used in the analysis, why you accepted the given input, or how and why you changed a variable. The analysis should also examine the relevant cash flows, compare the final valuation to the stocks current price and explain any differences. (Note: Remember to adjust the equity risk premium to between 5% and 6%; also, adjust the growth rate to an appropriate long-term growth rate.)
Intrinsic Stock Value | 125.07 | ||
Excess Return Period (yrs) | 10 | Depreciation Rate (% of Rev) | 4.31 |
Revenues ($mil) | 30052 | Investment Rate (% of Rev) | 4.96 |
Growth Rate (%) | 8.84 | Working Capital (% of Rev) | 20.52 |
Net Oper. Profit Margin (%) | 20.92 | Short-Term Assets ($mil) | 13855 |
Tax Rate (%) | 28.972 | Short-Term Liab ($mil) | 6041 |
Stock Price ($) | 156.73 | Equity Risk Premium (%) | 5 |
Shares Outstanding (mil) | 690.2 | Company Beta | 0.8925 |
10-Yr Treasury Yield (%) | 5 | Value Debt Out. ($mil) | 4864 |
Bond Spread Treasury (%) | 1.5 | Value Pref. Stock Out. ($mil) | 0 |
Preferred Stock Yield (%) | 7.5 | Company WACC(%) | 9.25 |
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