Financial Evidence for SELL Recommendation of PLD

Financial Evidence for SELL Recommendation of PLD -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Analysis Coming to the conclusion to SELL took in-depth financial analysis of PLD’s statements as reported by Value Line Database (exhibit 2), Google Finance, and Yahoo Finance (exhibit 3). The first step taken to evaluate the value of PLD’s stock was to find the discount rate (k) and the growth rate (g). To find k we used multiple models including: short term and long term investment horizons, current and historical Betas, as well as the rule of thumb model. The short-term horizon using Beta from December 2008 gave a discount rate of 14.06%. The long-term horizon using December 2008’s Beta returned a discount rate of 15.77%. The short-term horizon using the current Beta returned a discount rate of 31.28%. The long-term horizon using current Beta returned a discount rate of 24.63%. The rule of thumb model returned a discount rate of 5.5%. We feel the most accurate current discount rate is the long-term horizon with current Beta rating or 24.63%. The reason we chose this was due to the volatility of the stock as well as the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

Financial Evidence for SELL Recommendation of PLD -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online