Question
Using the resources available on the Internet, build a spreadsheet to calculate the intrinsic value of the stock you are following for Sysco Corp. For
Using the resources available on the Internet, build a spreadsheet to calculate the intrinsic value of the stock you are following for Sysco Corp. For firms that pay substantial dividends, you should include a model using at least a 3-stage (i.e. 3 different near term growth patterns ending with a constant growth assumption) Dividend Discount Model. In the event that your stock does not pay a substantial dividend (> 1% dividend yield), then complete this assignment using Procter & Gamble (PG). Make sure you state all of the assumptions used to generate this value. You must also show all of your work. Make sure you demonstrate all of the techniques discussed in class for estimating each of the assumed variables. (i.e. 4 methods for estimating required return, 2 methods for estimating constant growth.) In doing so you will generate at least 8 price estimates. Remember that your goal is to identify an appropriate price range for the stock. How does your value compare to the actual price? What are some of the reasons for any discrepancy? [Hint do not use the H-model]
When designing your spreadsheet you should set it up such that it could be easily modified to value other stocks. I have posted a video on Canvas to assist you in building this model. Please dont let this stifle your creativity. I am certain that there are more aesthetically pleasing ways to display the information on the assumptions page.
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