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What criticisms can you make of this model

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Questions: Based on the above documents and applying the concepts from this module and Module 3, please answer the following three questions:

1. The intrinsic value of Alphabet with the assumptions in the FCF valuation model on the spreadsheet provided above is much higher than the current market price of $91.87 on 1/17/23. How would you explain the disparity, and would you purchase Alphabet? Justify your answer.

2. Examining the spreadsheet (provided above) valuation model, what criticisms can you make of this model? (Hint: try changing the assumptions)

3. Based on the current P/E ratio, the financial and valuation information provided, and the Buffett approach to buying a stock, would you purchase the stock? Explain your answer.

 

Reference no: EM133527599

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