a) Estimate of the value of the firm stock, using several relative valuation methods. My firm stock
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a) Estimate of the value of the firm stock, using several relative valuation methods.
My firm stock is Target Corporation (TGT) , How can I estimate the value of the Target Corporation (TGT) using several valuation methods?
I found this equation image on my book dont know if it applies to this problem.
Transcribed Image Text:
Value of Operations FCF1 (1+WACC) FCF2 (1 + WACC) Free cash flow (FCF) Weighted average cost of capital (WACC) Cost of equity: Dividends (D) The required return on stock ++ FCF (1+ WACC) Firm's debt/equity mix Value of Stock D Dz D + ++ (1+r) (1+r) (1+r)* Cost of debt Value of Operations FCF1 (1+WACC) FCF2 (1 + WACC) Free cash flow (FCF) Weighted average cost of capital (WACC) Cost of equity: Dividends (D) The required return on stock ++ FCF (1+ WACC) Firm's debt/equity mix Value of Stock D Dz D + ++ (1+r) (1+r) (1+r)* Cost of debt
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