We want to estimate the value of Teladoc Health Inc. (NYSE: TDOC). Teladoc is a new company that does not pay a dividend and the required return is 8.5%. The free cash flow for TDOC is $202 million and expected to grow at 9%, 8%, and 7% for the next 3 years and then at a constant growth rate of 3%. The outstanding debt for TDOC is $1.2 billion and the number of shares of common stock outstanding is 25 million and there is no preferred stock. What is the estimated stock price today?
We want to estimate the value of Teladoc Health Inc. (NYSE: TDOC). Teladoc is a new company that does not pay a dividend and the required return is 8.5%. The free cash flow for TDOC is $202 million and expected to grow at 9%, 8%, and 7% for the next 3 years and then at a constant growth rate of 3%. The outstanding debt for TDOC is $1.2 billion and the number of shares of common stock outstanding is 25 million and there is no preferred stock. What is the estimated stock price today?
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
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We want to estimate the value of Teladoc Health Inc. (NYSE: TDOC). Teladoc is a new company that does not pay a dividend and the required return is 8.5%. The
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