Stock Analysis:

In this section, you will select five stocks from the provided list and determine their values by applying an appropriate valuation model from the following options: price to multiple model (earning or sales), dividend valuation model, or free cash flow to equity valuation model.

Five selected stocks are as follows:

IBM: Dividends: $6.21 (2018), Earnings: $3.42 per share, $14.77 billion EBITDA 2017, Sales: $79.14 billion (2017), $18.6 billion in Q3 2018

KO: Dividends: $1.56 (2018), Earnings: $0.58 per share, $8.84 billion EBITADA 2017, Sales: $35.02 billion (2017), $8.245 billion in Q3 2018

BAX: Dividends: $0.70 (2018), Earnings: $0.80 per share, $2.24 billion EBITADA 2017, Sales: $10.56 billion (2017), $2.76 billion in Q3 2018

NFLX: Dividends: N/A, Earnings: $0.89 per share, $7.16 billion EBITADA 2017, Sales: $11.69 billion (2017), $3.99 billion in Q3 2018

GE: Dividends: $0.48 (2018), Earnings: -$2.62 per share, $13.38 billion EDITADA 2017, Sales: $122.09 billion (2017), $29.57 in Q3 2018

Dividends shown are total calculated dividend payments for the calendar year. (EX: GE= $0.14 dividend payment in all four quarters of 2018 = $0.48 total for 2018)

A. Determine the value of each stock by using an appropriate model based on the characteristics provided for each stock; use each model at least once.

B. Provide a rationale for the stock valuation method you chose for each stock.

C. Using the calculated valuation, the current market price, and historical performance, determine the expected return for each stock.

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