Question
The information for Jefferies is below. Use the Combined Dividends & Earnings Model to find its intrinsic value. Remember that you are forecasting future cash
The information for Jefferies is below. Use the Combined Dividends & Earnings Model to find its intrinsic value. Remember that you are forecasting future cash flows (2024, 2025, and 2026). If its current price is $27.96, is it over or under-valued?
***Note that the info below is for 2023; you must forecast the 2024 EPS using the formula EPS24 = EPS23 *(1 + g).
2023 | |
EPS | $3.90 |
Beta | 1.20 |
Average DPO | 0.287 |
Growth rate | 0.15 |
Average P/E | 8.967 |
Please use the following table to describe how to find the below:
| 2024 | 2025 | 2026 | |
| Required Return | |||
| EPS | |||
| Dividend | |||
| Expected sale price | |||
| Total cash flow | |||
| NPV | |||
| Closing Price | |||
| Overvalued/Undervalued |
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
