Morgan Stanley analysts made the following forecasts for LinkedIn. (i) 26% CAGR revenue growth from 2011-2020. (ii) 35% EBITDA margin in 2020. (iii) Cost of capital of 11.5 % and (iv) terminal growth rate of 6%. What per share valuation do you obtain based on these assumptions?

Answer rating: 100% (QA)

To calculate the pershare valuation of LinkedIn based on the provided forecasts and assumptions we can use the discounted cash flow DCF method The DCF method estimates the present value of future cash ... View the full answer