DISNEY’S NUMBERS
Use the following information on Disney to answer the case questions. Disney’s current stock price is $113.00 per share. The average growth rate of the company’s dividend has been 16.09% from 2002 through 2017. Disney’s return on equity is 19.5% and the company retains approximately 75.7% of its profits while paying out the remaining 24.3% in dividends. The company’s stock currently trades at 16.27 times its current year earnings estimate of $6.96 per share. Analysts expect the company to earn $7.36 per share in 2019 and $8.24 in 2020. Disney’s peers engaged in movie making trade at 19.6 times their current year earnings estimates while peers in parks and resorts trade at 19.2; media and broadcasting at 17.0 and consumer products at 19.1.
What is Disney stock’s intrinsic value using the constant growth model?
What is Disney stock’s intrinsic value using the multi-stage growth model?
What is Disney stock’s intrinsic value using the dividend discount model?
What is Disney stock’s intrinsic value using the market multiple method?
Reconcile Disney stock’s intrinsic value, considering the strengths and weaknesses of each valuation approach.
DISNEY’S NUMBERS Use the following information on Disney to answer the case questions. Disney’s current stock...
DISNEY’S NUMBERS Use the following information on Disney to answer the case questions. Disney’s current stock price is $113.00 per share. The average growth rate of the company’s dividend has been 16.09% from 2002 through 2017. Disney’s return on equity is 19.5% and the company retains approximately 75.7% of its profits while paying out the remaining 24.3% in dividends. The company’s stock currently trades at 16.27 times its current year earnings estimate of $6.96 per share. Analysts expect the company...
Disney's current stock price is $113.00 per share. The average growth rate of the company's dividend has been 16.09% from 2002 through 2017. retains approximately 75.7% of its profits while paying out the remaining 24.3% in dividends. The company's stock currently trades at 16.27 times its current year earnings estimate of $6.96 per share. ■ Analysts expect the company to earn $7.36 per share in 2019 and $8.24 in 2020. ■ Disney's peers engaged in movie making trade at 19.6...
Use the following information on Disney to answer the case questions.◼ Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018◼ Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.◼ The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.◼ Analysts expect the company to earn...
1) An analyst gathered the following financial information about a firm: Estimated (next year’s) EPS $10 per share Dividend payout ratio 40% Required rate of return 12% Expected long-term growth rate of dividends 5% What is the analysts’ estimate of intrinsic value? Show work. 2) An analyst has made the following estimates for a stock: dividends over the next year $.60 long-term growth rate 13% Intrinsic value $24 per share The current price of the shares is $22. Assuming the...
An investor gathers the following information about a company: 9. Current dividend share $3 per Historical annual dividend growth rate 4% Expected annual dividend growth rate for the next three years 8% $33 Expected stock value per share at the end of Year 3 If the investor's required rate of return is 15%, the current estimate of the intrinsic value per share is: $
please answer last three questions:) Urban Drapers has a sister company named Super Carpeting Inc. (SCI). SCI just paid a dividend (Do) of $2.88 per share, and its annual dividend is expected to grow at a constant rate (gL) of 6.00% per year. If the required return (rs ) on SCI's stock is 15.00%, then the intrinsic value of SCI's shares is $33.62 per share. (Note: Round intermediate calculations and your final answer to two decimal places.) Which of the...
Case Study Notes Case Questions 1- Is Disney liquid compared to its peers? 2- Does Disney manage its assets effectively compared to its peers? 3- Does Disney’s debt load suggest trouble paying its creditors? 4- Compare Disney’s profitability to its peers. 21,922 36.5% 46.7% 24,701 41.1% 6,095 38.8% PECP Studio Entertainment 10,065 16.7% 19.1% 3,414 5.7% -738 -4.7% -668 -10 Eliminations Total 59,434 HOW DISNEY MAKES MONEY PARKS, EXPERIENCES & CONSUMER PRODUCTS A previous Disney Case used the company's financial...
2. Case Discussion for INTERNET MARKETING Digital Transformation at Disney World The Disney theme park experience – whether it is at the Magic Kingdom in Walt Disney World in Orlando, FL or the original Disneyland in Anaheim, CA or one of the newer parks, such as the Shanghai Disney Resort (opening in 2016) – is designed to be an immersive, exciting, and definitely magical experience for guests. Disney famously wants the reality created inside its theme parks to be better...
Firm A just paid $2.50 per share and the current stock price is $36.00.... 1. Firm A just paid $2.5 per share, and the current stock price on the market is $36.00. The beta of this stock is 1.2, and the risk-free rate is 2%. and the market return is 10%. You expect that the long term growth rate of this dividend would be 4%. What is the value of this stock? 2. From Bloomberg, you got the following information....
Calculate the current price of a stock given the following information: A dividend has a growth rate of 0% for the first two periods. Beginning period 3 and continuing in perpetuity, the dividend grows at 4%. The required rate of return is 7%, Do-S2.00 The current price of a stock would be S63 per share 9-7a Corporate Valuation Model A firm has $20 million of debt and $30 million of preferred stock. It has an expected free cash flow (FCF)...