barcode in vb.net source code Merrill Lynch Valuation Baseline Scenario: 13-Percent Growth Rate, Value $72.50 in Software

Encoder ECC200 in Software Merrill Lynch Valuation Baseline Scenario: 13-Percent Growth Rate, Value $72.50

Merrill Lynch Valuation Baseline Scenario: 13-Percent Growth Rate, Value $72.50
Data Matrix 2d Barcode Scanner In None
Using Barcode Control SDK for Software Control to generate, create, read, scan barcode image in Software applications.
ECC200 Encoder In None
Using Barcode drawer for Software Control to generate, create Data Matrix 2d barcode image in Software applications.
The results of the baseline valuation are shown in ValuePro general input screen (Exhibit 8-13), which shows Merrill to have an 8.53-percent cost of equity, and Merrill s stock to have an intrinsic value of $72.50 significantly higher than its closing price on December 17th, of $40.13.
Reading Data Matrix ECC200 In None
Using Barcode decoder for Software Control to read, scan read, scan image in Software applications.
ECC200 Generation In Visual C#
Using Barcode generation for Visual Studio .NET Control to generate, create DataMatrix image in VS .NET applications.
Merrill Lynch Valuation Low-Growth Scenario: 5 percent Growth Rate, Value $43.83
Creating Data Matrix In .NET Framework
Using Barcode encoder for ASP.NET Control to generate, create Data Matrix 2d barcode image in ASP.NET applications.
Encoding Data Matrix In .NET
Using Barcode generation for VS .NET Control to generate, create ECC200 image in Visual Studio .NET applications.
It is our belief that the 13-percent consensus analyst expectation of earnings growth is too high for Merrill. What if the growth in earnings at Merrill follows a more reasonable 5 percent If we keep other inputs
Making ECC200 In VB.NET
Using Barcode encoder for .NET framework Control to generate, create Data Matrix ECC200 image in .NET framework applications.
Create USS-128 In None
Using Barcode generation for Software Control to generate, create UCC.EAN - 128 image in Software applications.
STREETSMART GUIDE TO VALUING A STOCK
Barcode Creation In None
Using Barcode encoder for Software Control to generate, create barcode image in Software applications.
Print ECC200 In None
Using Barcode generator for Software Control to generate, create DataMatrix image in Software applications.
EXHIBIT 8-13
Drawing Code 39 In None
Using Barcode creator for Software Control to generate, create USS Code 39 image in Software applications.
Draw UCC - 12 In None
Using Barcode creator for Software Control to generate, create UPC Code image in Software applications.
Merrill Lynch General Input Screen Baseline Scenario
Uniform Symbology Specification ITF Generator In None
Using Barcode creator for Software Control to generate, create 2 of 5 Interleaved image in Software applications.
Draw Bar Code In None
Using Barcode creator for Word Control to generate, create bar code image in Office Word applications.
constant and plug 5 percent into the growth rate window of the general input screen (Exhibit 8-14), we see that Merrill s intrinsic value is $43.83.
UPC-A Supplement 5 Generator In Java
Using Barcode encoder for Java Control to generate, create UPC A image in Java applications.
EAN13 Generation In None
Using Barcode maker for Online Control to generate, create GS1 - 13 image in Online applications.
Merrill Lynch Valuation Low-Growth, Increasing NOPM Scenario: 5-percent Growth Rate, 12-percent NOPM, Value $55.19
Data Matrix 2d Barcode Creation In None
Using Barcode maker for Online Control to generate, create DataMatrix image in Online applications.
EAN / UCC - 13 Generator In Visual Studio .NET
Using Barcode generation for ASP.NET Control to generate, create UCC - 12 image in ASP.NET applications.
Let s keep our growth rate assumption at 5 percent. Merrill s 2001 fiscal year was a debacle due in large part to 9/11 and a depressed stock market. In that environment, Merrill s NOPM dropped to 3.55 percent, bringing the 3-year average NOPM to 9.4 percent. Merrill s NOPM averaged 12.3 percent during 1999 and 2000, and was running at 12.96 percent through the first three quarters of 2002. What happens to intrinsic value if the NOPMs at Merrill return to an average of 12 percent or higher If we keep other inputs constant and plug 12 percent into the NOPM window of the general input screen (Exhibit 8-15), we see that Merrill s intrinsic value is $55.19.
Code39 Scanner In Visual Studio .NET
Using Barcode scanner for Visual Studio .NET Control to read, scan read, scan image in .NET applications.
Print Data Matrix ECC200 In Java
Using Barcode encoder for Java Control to generate, create ECC200 image in Java applications.
Merrill Lynch Stock Buy Sell Hold
Based upon the 5-percent growth rate, lower NOPM value of $43.83 for Merrill Lynch, the stock is worth a second look. Based on its price level of $40.13, Merrill Lynch s valuation ratio is ($43.83/$40.13) equal to 1.09. The real upside to this stock occurs if Merrill s NOPM increases to its pre-2001 levels of greater than 12 percent. At a 5-percent growth
Valuing a Stock Putting It All Together
EXHIBIT 8-14
Merrill Lynch General Input Screen Low-Growth Scenario
rate and 12-percent NOPM, Merrill Lynch s intrinsic stock value is $55.19, and its valuation ratio is ($55.19/$40.13) equal to 1.375, and a very definite buy. If you believe that Merrill Lynch will improve its NOPMs after a very difficult 2001, Merrill s a buy. This is a bet on an operating turnaround. At the time of this valuation, we believed that at a price level of $40 or below, Merrill Lynch stock was a buy.
EXHIBIT 8-15 Scenario
Merrill Lynch General Input Screen Increasing NOPM
STREETSMART GUIDE TO VALUING A STOCK
Valuing Berkshire Hathaway December 18, 2002
Price $72,000, Value $63,028 to $80,627, Hold General Description of Berkshire Hathaway Warren s Baby
Berkshire Hathaway Inc. (BRKa: www.berkshirehathaway.com/ ) is a holding company that owns subsidiaries that are engaged in the property and casualty insurance and reinsurance business, finance and financial products, building products, flight services, retail businesses, and manufacturing companies. Berkshire also can be viewed in part as a portfolio company that owns stock in other companies, similar to an investment trust. Berkshire Hathaway s chairman is Warren Buffett, the legendary value investor. Rather than pay dividends or repurchase shares in the open market, Berkshire invests a significant portion of its free cash flows in stocks of other companies that Mr. Buffett believes are undervalued. Berkshire and its subsidiaries have approximately 110,000 employees and assets worth over $167 billion. The insurance group contributes about one-half of the revenue of Berkshire s operating businesses. The insurance group consists of GEICO, which provides low-cost auto insurance throughout the United States, General Re, which conducts a global reinsurance business in the property and casualty area, and Berkshire Hathaway Primary Insurance Group and Reinsurance Group. In order of importance after the insurance group, the businesses that generate revenue for Berkshire are: Shaw Industries (carpet manufacturing), building products, flight services, financial products, and retail companies. As of September 30, 2002, Berkshire owned multibillion-dollar equity positions in four companies: The Coca-Cola Company $9.6 billion, American Express Company $4.7 billion, The Gillette Company-$2.8 billion, and Wells Fargo & Company $2.5 billion, and held equity investments of over $8.1 billion in other companies. The current value of these investments are reflected in Berkshire s balance sheet, which is very important in determining the value of a portfolio company. Berkshire Hathaway s market equity is $108.7 billion. That market value is 34 times earnings of $2085 per share, but only 1.74 times book value of $40,926 per share. Berkshire pays no annual dividend. The events of September 11th significantly affected the expenses and earnings of the insurance group and negatively affected Berkshire s stock
Copyright © OnBarcode.com . All rights reserved.