Chap018 Equity Valuation Models 博迪投资学教材.pptVIP

CHAPTER 18;Balance Sheet Models Book Value Dividend Discount Models Price/Earning Ratios;Table 18.1 Financial Highlights for Microsoft Corporation, October 25, 2007;Limitations of Book Value;Expected Holding Period Return;PH = the expected sales price for the stock at time H H = the specified number of years the stock is expected to be held;V0 = Value of Stock Dt = Dividend k = required return;Stocks that have earnings and dividends that are expected to remain constant Preferred Stock;E1 = D1 = $5.00 k = .15 V0 = $5.00 /.15 = $33.33;g = constant perpetual growth rate ;E1 = $5.00 b = 40% k = 15% (1-b) = 60% D1 = $3.00 g = 8% V0 = 3.00 / (.15 - .08) = $42.86;g = growth rate in dividends ROE = Return on Equity for the firm b = plowback or retention percentage rate (1- dividend payout percentage rate);Figure 18.1 Dividend Growth for Two Earnings Reinvestment Policies;Present Value of Growth Opportunities;Present Value of Growth Opportunities Continued;ROE = 20% d = 60% b = 40% E1 = $5.00 D1 = $3.00 k = 15% g = .20 x .40 = .08 or 8%;Vo = value with growth NGVo = no growth component value PVGO = Present Value of Growth Opportunities;Life Cycles and Multistage Growth Models;Multistage Growth Rate Model: Example;Table 18.2 Financial Ratios in Two Industries ;Figure 18.2 Value Line Investment Survey Report on Honda Motor Co.;P/E Ratios are a function of two factors Required Rates of Return (k) Expected growth in Dividends Uses Relative valuation Extensive Use in industry;E1 - expected earnings for next year E1 is equal to D1 under no growth k - required rate of return; b = retention ratio ROE = Return on Equity;E0 = $2.50 g = 0 k = 12.5% P0 = D/k = $2.50/.125 = $20.00 PE = 1/k = 1/.125 = 8;b = 60% ROE = 15% (1-b) = 40% E1 = $2.50 (1 + (.6)(.15)) = $2.73 D1 = $2.73 (1-.6) = $1.09 k = 12.5% g = 9% P0 = 1.09/(.125-.09) = $31.14 PE = 31.14/2.73 = 11.4 PE = (1 - .60) / (.125 - .09) = 11.4 ;Table 18.3 Effect of ROE and Plowback o