Value a public company.
You must choose a public company with at least 10 year dividend payment history for this project. (Exceptions: If you have a strong preference to choosing a firm without dividends, you should use multistage valuation models.) You must post your choice of companies on the discussion board and your selection must be different from other students posted ahead of you! Sample companies include: WMT, KR, TGT, HD, Lowes, Dillardâ€™s, JCP, and so on. You should be able to observe its business locally.
I choose Dillardâ€™s and its data is attached
Be sure to justify your inputs for each valuation model. Compare your valuation to the current stock price and target prices from analysts.
B1. Estimate the stock price using dividend discount model.
B2. Estimate the stock price using discounted cash flow model.
B3. Estimate the stock price using price multiples such as P/E ratio with at least 5 competitors.
B4. Revenue analysis based on 10-k or annual report
a. Revenue composition or segments or sources.
b. Growth rate of revenue for past few years.
c. Growth strategies
d. KPIs (key performance indicators) or any metrics related to revenue
e. Stock price over the past few years