At the end of 2021, ABC company had total sales $22 million. They had 1.3 million...

  

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At the end of 2021, ABC company had total sales $22 million. They had 1.3 million shares outstanding. We expect sales growth to be 6% per year for the next 3 years. After that we expect sales growth to be 3% into perpetuity. The company's profit margin is 15% and the company has a return on equity of 25%. The cost of equity is 12%. Forecast: 1) Sales per Share 2) Profit (earnings per share) 3) Free cash flow to equity (per share) for the next 3 years, along with a terminal value beyond the three years. 4) Determine the intrinsic value of the stock. 5) How much of the intrinsic value comes from our estimate of future growth (PVGO)? At the end of 2021, ABC company had total sales $22 million. They had 1.3 million shares outstanding. We expect sales growth to be 6% per year for the next 3 years. After that we expect sales growth to be 3% into perpetuity. The company's profit margin is 15% and the company has a return on equity of 25%. The cost of equity is 12%. Forecast: 1) Sales per Share 2) Profit (earnings per share) 3) Free cash flow to equity (per share) for the next 3 years, along with a terminal value beyond the three years. 4) Determine the intrinsic value of the stock. 5) How much of the intrinsic value comes from our estimate of future growth (PVGO)?