Question
Valuate the share of the Tesla company as of 2022 using these four equity valuation approaches such as: DDM (Gordon Growth Model): since Tesla does
Valuate the share of the Tesla company as of 2022 using these four equity valuation approaches such as:
DDM (Gordon Growth Model): since Tesla does not pay out any dividends, explain why Tesla is not paying any dividend.
Discounted Cash Flow DCF using the Present value of all future cash flows to equity holders “free cash flows to equity” = Net Profit – ∆BVA (change in book value of operating net assets) + ∆BVND (change in book value of net debt)
Valuation based on multiples using EPS
Industry averages (automotive industry data average)
And compare it with the current price. Explain the limitations that come with the choice of variables.
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Fundamentals Of Corporate Finance
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0135811600, 978-0135811603
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