2. Collect required data (you can get it from Yahoo Finance): Dividends paid last year (for the year) - Historical data tab at Yahoo Finance. Analyst projected growth rate - use the Next 5 Years Growth Estimate - Analysis tab at Yahoo Finance. P/E ratio - Summary tab at Yahoo Finance. Earnings per share (EPS) - Summary tab at Yahoo Finance. Current stock price - Summary tab at Yahoo Finance.

3. Go through the following assignments preparing excel spreadsheet with analysis: I have choosen Pfizer Inc. (PFE) and are supposed to to the following calculations

A. Compute the value using the constant growth rate model. Is the stock undervalued or overvalued (compare the value calculated to the current stock price)? B. Using 5-year dividend discount model, project dividends for the next 5 years and the price in 5 years (using the P/E ratio model). To estimate the value, find the present value of these dividends and future price. Is the stock undervalued or overvalued (compare the value calculated to the current stock price)? C. Calculate expected return (r), compare it to discount rate (i) and comment on whether or not the stock price fairly reflects its value based on that specific calculation. D. Comment on how the stock was doing over the last eight months and whether or not it was impacted by the pandemic (consider checking the stock price over the last twelve months, building a chart and commenting on some events that may have had an impact.)

Compute the stock value using a discount rate of 11%

I have choosen Pfizer Inc. (PFE) and are supposed to to the calculations above, using data from Yahoo Finance