Module 5 - Valuation Flashcards
Company A has 133,619,207 outstanding common shares trading at a price of PhP2,102.00 and 333,291,819 outstanding preferred shares with a par value of PhP1,000.00 per share. The Company also has outstanding total debt of PhP149,154,625,886 and zero cash. Based on this, what is the Market Capitalization on the common shares of the stock?
PhP 280.87 billion
Company A has 133,619,207 outstanding common shares trading at a price of PhP2,102.00 and 333,291,819 outstanding preferred shares with a par value of PhP1,000.00 per share. The Company also has outstanding total debt of PhP149,154,625,886 and zero cash. Based on this, what is the Enterprise Value of Company A?
PhP 763.31 billion
Based on the computed Market Capitalization of Company A under Question #1, and the relevant data from the following table, what is the one year forward P/E ratio of the stock?
12.3x
Based on the computed Enterprise Value of Company A under Question # 2, and the relevant data from the table in Question #3, what is the one year forward EV/ EBITDA ratio of the stock?
10.0x
What is the formula for Capital Asset Pricing Model?
Which of the following is NOT used to arrive at a valuation of a Company’s shares of stock?
Dividend Discount Model
Debt to Equity Ratio
Discounted Cash Flow
Market Multiples
Debt to Equity Ratio
When using Discounted Cash Flows (DCF) to value a company in a high growth or transition stage of its business life cycle, which of the following is NOT appropriate to use?
Gordon Growth/ Constant Growth Model
Multi-Stage Growth Model
Two- Stage Growth Model
Three- Stage Growth Model
Gordon Growth/ Constant Growth Model
Which of the following refers to the valuation approach that “estimates the value of an asset by looking at the pricing of ‘comparable’ or similar assets relative to a common variable like earnings, cash flows, book value or sales”
Market Multiples
Discounted Cashflow
Adjusted Asset Approach
Du Pont Analysis
Market Multiples
Based on the following table, compute for the resulting WACC:
6.64%
The estimated betas for Company A, Company B, and Company C are 2.50, 1.50, and 0.80, respectively. The risk-free rate of return is 4.35%, and the equity market risk premium is 8.04%. What is the required equity rate of return for Company B using the CAPM?
16.41%
Company XYZ has 81,247,000 listed common shares with a par value of PhP1.00, 89,816,300 outstanding common shares with a par value of PhP1.00 and 10,500,000 preferred shares with a par value of PhP10.00. The preferred shares are not listed. At a market capitalization of PhP2,357,677,875, what is Company XYZ’s shares price per share?
PhP 26.25 per share
Company GFD declared dividends for FY 2020 amounting to PhP210,000,000. Its average historical dividend growth rate is 8.5%. It has 23,500,000 common shares. At a 6.20% dividend yield based on 2021 estimated dividends, what is its current trading price?
PhP 156.40 per share
Company ERT estimates net sales of PhP10,814.8 million, debt of PhP4,522.3 million, preferred shares with a value of PhP91.5 million, and cash of PhP1,849.9 million for FY 2021. Based on 788.6 million common shares outstanding and a 2021 Enterprise Value/ Sales ratio of 0.75x, what is the fair value of Company ERT?
6.78 per share
Company ERT estimates net sales of PhP10,814.8 million, debt of PhP4,522.3 million, preferred shares with a value of PhP91.5 million, and cash of PhP1,849.9 million for FY 2021. Based on 788.6 million common shares outstanding and a 2021 Enterprise Value/ Sales ratio of 0.75x, what is the fair value of Company ERT?
PhP 6.78 per share
Which of the following financial measures is NOT compared to Enterprise Value to arrive at a valuation of a stock?
a. Net Income
b. EBITDA
c. Sales
d. Capacity Measure
Net Income
In relation to Question #8, Company DCF has the following projected Free Cash Flows to the Firm (FCFF). Based on these, what is Company DCF’s net present value?
Php6,045.20
