Stock Valuation - Class 5
Stock Valuation - Class 5
Stock Valuation - Class 5
Company ABC
Year 1 2 3
Growth of dividend 10% 10% 10%
Dividend 3.30 € 3.63 € 3.99 €
Year 1 2 3
Growth of dividend 10% 10% 10%
Dividend 3.30 € 3.63 € 3.99 €
PV 3.17 € 3.36 € 3.55 €
Present Value of TV
Pv = FV / (1 + RRR) ^n
CANT DO THAT
4 5 6
10% 10% 10%
4.39 € 4.83 € 5.31 €
Terminal Value
100.50 €
ears of conve
4 5 6 7 8 9
10% 10% 9% 8% 7% 6%
4.39 € 4.83 € 5.27 € 5.69 € 6.09 € 6.45 €
TV
3.75 € 3.97 € 4.16 € 4.32 € 4.45 € 4.53 €
TV (PV)
3.71%
emands back for investing
term growth g )
vidend)
all prices + TV
US GDP Apple
Billions PV 24,000.00 € 100.00 €
Billions FV in 170,560.40 € 910,043.82 €
growth 4% 20%
This could not happen, this would indicate that apple is few times larger than the whole US GDP
Therefor, don’t be absurd with estimating long term growth for companies…
10
5%
6.77 €
140.89 €
4.58 €
59.51 €
e whole US GDP