Calculate the maximum price you would be willing to pay

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Reference no: EM133727113

Discussion Post: Amazon Stock Price and Valuation

Most investors will include stocks in their overall investment portfolio. Savvy investors will often conduct their own independent research to determine which stocks to invest in based on growth and income opportunities, as well as considering risk and reward. In this discussion forum, you will research and analyze stocks to potentially invest in for your hypothetical investment portfolio due in Week 4.

1) Select a company from the Yahoo! Finance website or another online source and review its historical and forecasted data.

In your initial discussion forum post,

1) Provide an overview of the company you selected. Be sure to include the following information:

a) Company name
b) Ticker symbol
c) Current stock price
d) 52-week high stock price
e) 52-week low stock price

2) Calculate the maximum price you would be willing to pay for this stock using the valuation techniques covered in Chapter 8 (e.g., zero-growth dividend valuation model (DVM), constant growth DVM, price-to-cash flow ratio, expected return/IRR approach, etc.).

a) Be sure to show your calculations. Consider using the Equation feature in your discussion forum text editor to show your calculations:

3) Explain how the price you computed compares with the current stock's market price.

4) Explain if you would consider this stock to be a worthwhile investment candidate.

Reference no: EM133727113

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