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Use the following information to answer Questions about NVDA stock Table 1 11/15/18 11/15/19 11/15/20 11/15/21 This data for 11/15/2018 Price 202.39 204.19 531.85 7/20/21
Use the following information to answer Questions about NVDA stock Table 1 11/15/18 11/15/19 11/15/20 11/15/21 This data for 11/15/2018 Price 202.39 204.19 531.85 7/20/21 Stock split 1:4 305.52 beta 2.7 2.06 1.6 1.45 Risk free Rate 0.025 0.025 0.025 0.04 0.07 0.09 0.09 0.12 expected mkt return expected EPS growth in the next 5 years 0.32 0.125 0.1744 0.326 Current EPS 7.3 4.8 9.07 4.72 1 The expected return on NVDA stock is 11/15/20 Assume that you stand on 11/15/2020 Assume a growth rate in the above table, in cell G42, is sustained for the next 5 years, after wich the growth will be at a constant rate given in k48. Answer questions 27 to 32 0.10364 2 Provide the expected EPS for years ending in 20211115-20261115 t= 0 1 2 3 4 5 6 11/15/20 11/15/21 11/15/22 11/15/23 11/15/24 11/25/25 11/15/26 EPS(t) 9.07 3 Assume that time t=0 referes to 11/15/2020. Provide the current price, PO, and the expected prices at the end of year t, Pt. t 11/15/20 11/15/21 11/15/22 11/15/23 11/15/24 11/25/25 Pt PO P1 P2 P3 P4 P5 4 The assumption on the indefinite long term growth and the epected 5-years growth in EPS in 20201115 imply that NVDA is way overpriced imply that NVDA is way underpriced imply that NVDA is fairly priced has nothing to do withpricing NVDA Use the following information to answer Questions about NVDA stock Table 1 11/15/18 11/15/19 11/15/20 11/15/21 This data for 11/15/2018 Price 202.39 204.19 531.85 7/20/21 Stock split 1:4 305.52 beta 2.7 2.06 1.6 1.45 Risk free Rate 0.025 0.025 0.025 0.04 0.07 0.09 0.09 0.12 expected mkt return expected EPS growth in the next 5 years 0.32 0.125 0.1744 0.326 Current EPS 7.3 4.8 9.07 4.72 1 The expected return on NVDA stock is 11/15/20 Assume that you stand on 11/15/2020 Assume a growth rate in the above table, in cell G42, is sustained for the next 5 years, after wich the growth will be at a constant rate given in k48. Answer questions 27 to 32 0.10364 2 Provide the expected EPS for years ending in 20211115-20261115 t= 0 1 2 3 4 5 6 11/15/20 11/15/21 11/15/22 11/15/23 11/15/24 11/25/25 11/15/26 EPS(t) 9.07 3 Assume that time t=0 referes to 11/15/2020. Provide the current price, PO, and the expected prices at the end of year t, Pt. t 11/15/20 11/15/21 11/15/22 11/15/23 11/15/24 11/25/25 Pt PO P1 P2 P3 P4 P5 4 The assumption on the indefinite long term growth and the epected 5-years growth in EPS in 20201115 imply that NVDA is way overpriced imply that NVDA is way underpriced imply that NVDA is fairly priced has nothing to do withpricing NVDA
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