StockValuation - Stock Valuation Two Stage Inputs Inflation Rate Real Discount Rate(Realk Earnings Retention Rate 3.0 9.0 50.0 Outputs Nominal Discount

StockValuation - Stock Valuation Two Stage Inputs Inflation...

This preview shows page 1 - 2 out of 2 pages.

Stock Valuation Two Stage Inputs Inflation Rate 3.0% Real Discount Rate (Realk) 9.0% Earnings Retention Rate 50.0% Outputs Stage 2 Nominal Discount Rate 12.3% Infinite Stage 1: Explicit Forecast Horizon Historical Data Horizon (ROI>K) (ROI = K) Period -2 -1 0 1 2 3 4 5 6 Inlfation Rate 2.8% 3.1% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Real Return on Investment (Real ROI) 22.3% 20.7% 19.0% 17.0% 15.0% 13.0% 11.0% 9.0% Nominal Return on Investment (ROI) 25.7% 24.4% 22.6% 20.5% 18.5% 16.4% 14.3% 12.3% Real Growth Rate In Dividend (Real g) 11.2% 10.4% 9.5% 8.5% 7.5% 6.5% 5.5% 4.5% Nominal Growth Rate in Dividend (g) 14.5% 13.7% 12.8% 11.8% 10.7% 9.7% 8.7% 7.6% Nominal Dividend/Share $5.10 $5.84 $6.64 $7.49 $8.37 $9.27 $10.17 $11.05 $11.89 Continuation Value/Share $256.51 Sum of Future Div. & Cont. Value/Shr $7.49 $8.37 $9.27 $10.17 $267.56 PV of Future Div. & Cont. Value/Shr $6.67 $6.64 $6.55 $6.40 $150.00 Intrinsic Value/Share $176.26
Stock Valuation Dynamic Chart Inputs Inflation Rate 3.0% 6 Earnings Retention Rate 50.0% 5 Outputs Real Discount Rate (Realk) 9.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% Intrinsic Value/Share $235 $235 $235 $235 $235 $235 $235 Stage 2 Nominal Discount Rate 10.2%

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture