ABC Industries is a fast-growing company with earnings growth expected of 20% for the next 5 years. Given this you expec
Posted: Tue Nov 23, 2021 8:50 am
ABC Industries is a fast-growing company with earnings growth
expected of 20% for the next 5 years. Given this you expect that
the company should be valued at 100% premium to the market
multiple, your estimate is that the market multiple will be 20x.
Given that your forecast for 2024 ESP is $10. What is your
valuation of the shares today if the required rate of return per
CAPM is 12%? Assume that it is the end of 2021 and that the company
does not pay a dividend
expected of 20% for the next 5 years. Given this you expect that
the company should be valued at 100% premium to the market
multiple, your estimate is that the market multiple will be 20x.
Given that your forecast for 2024 ESP is $10. What is your
valuation of the shares today if the required rate of return per
CAPM is 12%? Assume that it is the end of 2021 and that the company
does not pay a dividend