Please show all calculations if any. Will give a THUMBS UP! thank you
Use the information below and the Two-stage Growth Model to find Axis Capital’s intrinsic value. Forecast its cash flows from t+1 to t+3. If its current price is $37.54, is it over or under valued?
t |
t+1 |
t+2 |
t+3 |
t+4 |
|
Beta |
0.80 |
||||
ROE |
0.09 |
0.08 |
0.08 |
0.08 |
|
DPO |
0.37 |
0.34 |
0.34 |
0.34 |
|
Div |
$1.64 |
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