Question: Please Real and current data use to solve the problem Note: Please put real data and answer. solve it by real and current data you

Please Real and current data use to solve the problem

Note: Please put real data and answer. solve it by real and current data you can get data from internet. no need instruction and guidelines.

Question 01:

Relative Valuation

Select Technology industry sector .Take a sample of 20-25 firms from this industry sector and determine the key drivers of the relative valuation multiple . Perform regression to get predicted multiple values. State whether each stock in the sample is under or valued. Growth rates may be estimated from IBES estimates

  • The key drivers /companion variables for PE multiple are payout ratio , riskiness (measured by volatility of stock returns during one year period) and expected growth rates for a certain period of time
  • The key drivers for PEG ratio are risk and return on equity
  • The key drivers for EV/EBITDA are tax rate, depreciation and amortization , reinvestment requirement , cost of capital and expected growth ,
  • The key drivers for price to book value ratio are return on equity, payout ratio , riskiness measured by cost of equity and growth rate in earnings

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Note: Please put real data and answer. solve it by real and current data you can get data from internet. no need instruction and guidelines.

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