Task: Company Valuation:
Go to https://finance.yahoo.com/q?s=GE and, under Financials, download the income statement, balance sheet, and cash flow statement. GE is one of the holdings in the trust fund. Develop a valuation analysis for the intrinsic value of GE stock. The analysis should incorporate CAPM and the single-stage DDM. Refer to "Key Statistics" in the Yahoo site for additional model variable values such as beta.
Also, using FCFF (single-stage), calculate the intrinsic value of the firm.
Be sure to show all the detail of your calculations and of your computations of the inputs (e.g., g, k, WACC) and to document your research sources for inputs required for your valuation formulas (e.g., Equity Risk Premium). State and justify your conclusion as to whether GE is undervalued, overvalued, or fairly valued and why you believe that to be the case for each of the three methods. Also, state a conclusion as to which of the three methods might appear most reasonable to rely upon.