Valuation - Reverse Engineering Kr 28/01/2012 Market Value: Price per Share $ 23,46 Price Differential Valuation Parameters: $ 86,56 Per-share Percentage Book Value of Equity (most recent balance sheet) $4 214 $ 63,10 72,9% Shares Outstanding (in millions...
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Valuation - Reverse Engineering Kr 28/01/2012 Market Value: Price per Share $ 23,46 Price Differential Valuation Parameters: $ 86,56 Per-share Percentage Book Value of Equity (most recent balance sheet) $4 214 $ 63,10 72,9% Shares Outstanding (in millions of shares) 537 Equity Cost of Capital 4,93% One-Year Ahead Earnings per Share $ 2,54 Two-Year Ahead Earnings per Share $ 2,89 Earnings Growth through Year +5 9,2% Long-run Earnings Growth Rate 2,0% Dividend Payout Rate 23,5% Required Rate of Return: Risk Free Rate - US T-Bills 2,20% Market Risk Premium 4% Beta 0,65 Expected return per CAPM: 4,93% CAPM = Risk Free Rate + Beta*Risk premium Starbucks
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