Company valuation methods

Reference no: EM1330803

Company Valuation:

Go to https://finance.yahoo.com/q?s=GE and, under Financials, download the income statement, balance sheet, and cash flow statement. GE is one of the holdings in the trust fund. Develop a valuation analysis for the intrinsic value of GE stock. The analysis should incorporate CAPM and the single-stage DDM. Refer to "Key Statistics" in the Yahoo site for additional model variable values such as beta.

Also, using FCFF (single-stage), calculate the intrinsic value of the firm.

Be sure to show all the detail of your calculations and of your computations of the inputs (e.g., g, k, WACC) and to document your research sources for inputs required for your valuation formulas (e.g., Equity Risk Premium). State and justify your conclusion as to whether GE is undervalued, overvalued, or fairly valued and why you believe that to be the case for each of the three methods. Also, state a conclusion as to which of the three methods might appear most reasonable to rely upon.

Reference no: EM1330803

Questions Cloud

Decision tree analysis-investment options : Marcal Corporation is considering foreign direct investment in Asia. The company approximates that the project would require an initial investment of $14 million. Discuss 2-3 factors other than the value of the real option that the company should c..

Make java applet that displays the 13 standard colors : Write down an Java Applet that displays the 13 standard colors available in Java (back, blue, cyan, darkGray, gray, green, lightGray, magenta, orange, pink, red, white and yellow) in a set of 13 filled rectangles.

Explain how could government make a choice : Explain how could government make a choice among two health effects.

Explain strategic challenges facing human resources : Strategic Challenges Facing Human Resources - What do you think is the most significant strategic challenge facing HR today, and why? Use examples to substantiate your response.

Company valuation methods : Make a valuation analysis for intrinsic value of GE stock. The analysis must incorporate CAPM and single-stage DDM. Refer to "Key Statistics" in the Yahoo site for additional model variable values such as beta.

As the author listed as the first profit of the creation : As the author listed as the 1st profit of creation of approx 1000 private sector jobs. Describe the logic of this statement.

Explain hrm-r technology strategy : How would you implement, manage, and measure an organization-wide HRM-r technology strategy and What resources would you require, what outcomes would you expect, and what concrete results would you expect?

Explain computer programming is art or science : Which programming language appeals to you, and which language do you consider least appealing.

Determine the optimal order size : Estimate the optimal order size and the minimum total annual inventory cost.

User Account

All Pages