Question: Baidu recently got second listing in Hong Kong with IPO price of HK$252. Do you recommend the investors to buy the stock in one-year horizon? (3 May 2021 to 30 April 2022) Justify your answers using different aspects such as Moat, Management and Margin of Safety (Relative valuation only). Use less than 300 words to write up your recommendations to investors.

Formula Sheet Free Cash flow to Equity = Net Income- (Capital Expenditures - Depreciation)

• Change in Working Capital- (Principal Repayments - New Debt Issues)

P/E for a stable growth firm

P/E for a firm with high growth phase

Growth Rate = (1- Payout ratio)* Return on Equity

Dividend Payout Ratio = Dividend Yield/(1/P/E)

PBV Ratio: Stable Growth Firm PBV Ratio for a High Growth Firm

Levered beta to unlevered beta: L = u (1+ ((1-t)D/E))

Please solve it fast...Thank you!