Stock value analysis and cost of capital calculation Baxter Company and Endo International Plc

January 2017 | 9 pages | ID: S53B7692EDBEN
Sadia Saeed

Abstracts

Intrinsic value is a logical manner that is used by the investors for taking the investment decision. In the final deliverable we compute the intrinsic value for the Baxter Company and Endo International Plc. The examination is elaborating that the intrinsic valuation for the Baxter Company is undervalued and the reason for this is that the intrinsic value is more than the actual share price of the stock and on the other hand the intrinsic value for the Endo International Plc is overvalued because the intrinsic value is less than the actual price of the share. So, from investment point of view the stock of the Baxter Company is more favorable for the investment than the stock of the Endo International Plc. The reason for this is that the stock of the Baxter Company has high chances to enhance in their value in the future in comparison of the stock of the Endo International Plc. Cont… (1250 words of this report)

Contents

Part C: Estimation of the stock Values:
Stock value computation of Baxter Company:
Required Rate of Return Using CAPM:
Intrinsic Value Computation for Baxter Company:
Stock valuation Computation of Endo Inc:
Required Rate of Return Using CAPM:
Intrinsic Value for Computation Endo International Plc:
Explanation:
Part D: Estimating Cost of Capital
Weighted Average Cost of Capital for BAXTER COMPANY:
WACC for BAXTER COMPANY:
Weighted Average Cost of Capital for Endo Inc:
WACC for Apple:
Part E: Final Analysis
References: