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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