Period Ending Owners Earnings Discount Factor PV of FCF Current Value Shares Outstanding Intrinsic Value L 2020A |$ 111,443,000,000 $ Assumptions Discount Rate (r) Growth Rate (g1) Terminal Growth Rate $ 4,187,187,215,982 16,325,000,000 256.49 $ 10.00% 14.20% 4.00% S 2021P 2024P 127,267,906,000 $ 145,339,948,652 $ 165,978,221,361 $ 189,547,128,794 $216,462,821,083 $247,200,541,676 $ 282,303,018,594 $ 1.21 1.77 1.95 120,115,660,043 $ 124,701,894,336 $ 129,463,239,392 $134,406,381,260 $139,538,261,271 $144,866,085,793 $ 1.33 1.10 2022P 115,698,096,364 $ 2023P Complete DCF Model 2025P 1.46 2026P 1.61 2027P 2029P 2028P 322,390,047,235 $ 368,169,433,942 $ 2.14 2.36 150,397,336,341 $ 156,139,780,092 $ 2030P 420.449,493,562 $ 2.59 162,101,480,787 $ TV 7,287,791,221,736 2.59 2,809,759,000,304
Period Ending Owners Earnings Discount Factor PV of FCF Current Value Shares Outstanding Intrinsic Value L 2020A |$ 111,443,000,000 $ Assumptions Discount Rate (r) Growth Rate (g1) Terminal Growth Rate $ 4,187,187,215,982 16,325,000,000 256.49 $ 10.00% 14.20% 4.00% S 2021P 2024P 127,267,906,000 $ 145,339,948,652 $ 165,978,221,361 $ 189,547,128,794 $216,462,821,083 $247,200,541,676 $ 282,303,018,594 $ 1.21 1.77 1.95 120,115,660,043 $ 124,701,894,336 $ 129,463,239,392 $134,406,381,260 $139,538,261,271 $144,866,085,793 $ 1.33 1.10 2022P 115,698,096,364 $ 2023P Complete DCF Model 2025P 1.46 2026P 1.61 2027P 2029P 2028P 322,390,047,235 $ 368,169,433,942 $ 2.14 2.36 150,397,336,341 $ 156,139,780,092 $ 2030P 420.449,493,562 $ 2.59 162,101,480,787 $ TV 7,287,791,221,736 2.59 2,809,759,000,304
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
I calculated two different Apple's fair values by using DCF methods. Even though I used the same discount rate,
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education