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You are interested in the stock of ATLECOM Inc. You have collected the following stock data: ATLECOM Inc Dividend per share (annual t=0) Current stock
You are interested in the stock of ATLECOM Inc. You have collected the following stock data:
ATLECOM Inc | |
Dividend per share (annual t=0) Current stock market price Market price to book value ratio Earnings per share (annual t=0) Required rate of return (annual) Net profit margin Number of shares outstanding Assets to equity ratio Beta Sales | 1.24$ 28.55$ 1 2.69$ 10% 6% 5 000 000 1.4 1.3 224 166 666 |
Determine the intrinsic value of the stock according to Gordon's model. Given the result obtained in what will your recommendation be?
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