Stock Value Analysis and Cost of Capital Evaluation of Abbott Laboratories and Amerisource Bergen Company, (ABC)
Intrinsic value computation considered a powerful tool by the investors as it assists in identification as either the stock is undervalued or overvalued. We perform the analysis and compute the intrinsic value for the ABC and Abbott Company. The analysis display that the stock of Abbott Laboratories is slightly overvalued but the stock of the ABC is undervalued. The undervalued stock is considered highly valuable for the investors and investors like to make investment in the shares that are undervalued because it is a assumption that such stocks enhance in worth and value but the investors hesitate to make investment in the stocks that are overvalued as the stock of the Abbott Laboratories (ABT, 2016). In this manner the stock of the ABC is highly favorable for the investment (ABC, 2016). 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:
