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The Company in question is AGL Im just not entirely sure how im meant to do any of this. Intrinsic Value Estimation Start your valuation

The Company in question is AGL

Im just not entirely sure how im meant to do any of this.

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Intrinsic Value Estimation Start your valuation analysis with the estimation of expected return using CAPM. You need 3 inputs to calculate the CAPM expected return. 1. An Estimate of the company's Beta Use the daily closing price data for the company and the market index to calculate daily holding period yields for the most recent five years. Using this data, you can estimate raw beta by using regression analysis in Excel. Attach details of your work as an Appendix. Adjust the Raw Beta using the formula: Adjusted Beta =(0.67) Raw Beta +0.33 2. The Risk-Free Rate of Return Use the 10-year Australian Government bond yield as a proxy for the risk free rate. This yield can be found in Workspace AU10YT=RR. Take the current bid Yield (do not use the bond price) 3. The Market Return Use this estimate of the market return: 7% (source: CommSec) The CAPM required return should be used as the discount rate in your valuation models

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