Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the estimated intrinsic stock price based on the discounted cash flow ( DCF)model of valuation, and the below information? ARMK had revenues and

What is the estimated intrinsic stock price based on the discounted cash flow ( DCF)model of valuation, and the below information? ARMK had revenues and earnings in 2014 of $14.83Billion, & $148.96Million consecutively. They saw revenues and earnings in 2015 of $14.33Billion & $235.95Million consecutively, and in 2016 $14.42Billion and $287.81Million. The annual dividend growth in 2016 was 9.7%. The stock info is below. You may assume where there is missing information.

Aramark (ARMK)

NYSE - NYSE Delayed Price. Currency in USD

41.32+0.35 (+0.87%)

At close: November 24 1:02PM EST

Summary

Previous Close

40.97

Open

41.13

Bid

0.00 x 0

Ask

0.00 x 0

Day's Range

41.08 - 41.36

52 Week Range

32.87 - 44.12

Volume

279,785

Avg. Volume

1,195,221

Market Cap

10.128B

Beta

0.43

PE Ratio (TTM)

29.94

EPS (TTM)

1.38

Earnings Date

Feb 5, 2018 - Feb 9, 2018

Forward Dividend & Yield

0.42 (1.03%)

Income Statement

All numbers in thousands

Revenue 9/30/2016 10/2/2015 10/3/2014
Total Revenue 14,415,829 14,329,135 14,832,913
Cost of Revenue 12,890,408 12,880,424 13,363,918
Gross Profit 1,525,421 1,448,711 1,468,995
Operating Expenses
Research Development - - -
Selling General and Administrative 283,342 316,740 382,851
Non Recurring - - -
Others 495,765 504,033 521,581
Total Operating Expenses - - -
Operating Income or Loss 746,314 627,938 564,563
Income from Continuing Operations
Total Other Income/Expenses Net - - -
Earnings Before Interest and Taxes 746,314 627,938 564,563
Interest Expense 315,383 285,942 334,886
Income Before Tax 430,931 341,996 229,677
Income Tax Expense 142,699 105,020 80,218
Minority Interest - - -
Net Income From Continuing Ops 287,806 235,946 148,956
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income
Net Income 287,806 235,946 148,956
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 287,806 235,946 148,956

44.60

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Modelling Model Design And Best Practices Using Excel And VBA

Authors: Michael Rees

1st Edition

111890401X, 978-1118904015

More Books

Students also viewed these Finance questions