Stock Value Analysis and Cost of Capital Calculation of Allergen Plc and Agilent Technologies
Intrinsic valuation is considered a means of examining as either the stock of the specific company is overvalued or undervalued. We analyze the intrinsic value for Allergen Plc and Agilent Technologies through the dividend discount model. The analysis show that the intrinsic value for the Allergen Plc is lower than the actual stock price in the market that is a sign of overvaluation while the intrinsic value for the Agilent Technology is higher than the actual share price for the stock that is indicating the undervaluation of the stock. So, the shares of the Agilent Technology are more suitable for investment with high opportunity of increase in worth in future in comparison of the stock of Allergen Plc. Cont… (1200 words of this report)
c. Estimate the stock Values
Stock valuation of Allergen Plc:
Required Rate of Return Using CAPM:
Intrinsic Valuation for Allergen Plc:
Stock valuation of Agilent Technologies
Required Rate of Return Using CAPM:
Intrinsic Valuation for Apple Inc:
Analysis:
d. Estimating Cost of Capital:
Weighted Average Cost of Capital for Allergen Plc:
Allocating Weights for equity and debt:
Computation of WACC for Allergen Plc:
Weighted Average Cost of Capital for Agilent Technologies:
Cost of Debt and Equity:
Weights for equity and debt:
Computation of WACC for Agilent Technologies:
E. Final Report
References:
Stock valuation of Allergen Plc:
Required Rate of Return Using CAPM:
Intrinsic Valuation for Allergen Plc:
Stock valuation of Agilent Technologies
Required Rate of Return Using CAPM:
Intrinsic Valuation for Apple Inc:
Analysis:
d. Estimating Cost of Capital:
Weighted Average Cost of Capital for Allergen Plc:
Allocating Weights for equity and debt:
Computation of WACC for Allergen Plc:
Weighted Average Cost of Capital for Agilent Technologies:
Cost of Debt and Equity:
Weights for equity and debt:
Computation of WACC for Agilent Technologies:
E. Final Report
References:
