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  • DCF Model MDT 01-14-11

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    Michael Pullman
    67 views2 pages
    The document shows projections for earnings per share, dividends, and total value for a stock over the next 5 years, assuming 10% annual EPS growth, a 12 P/E ratio, 90% dividend payout ratio, and a required 15% annual return. It calculates that the maximum purchase price that would be justified given these assumptions is $26.12.

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    The document shows projections for earnings per share, dividends, and total value for a stock over the next 5 years, assuming 10% annual EPS growth, a 12 P/E ratio, 90% dividend payout ratio, and a required 15% annual return. It calculates that the maximum purchase price that would be justified given these assumptions is $26.12.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    67 views2 pages

    DCF Model MDT 01-14-11

    Uploaded by

    Michael Pullman
    The document shows projections for earnings per share, dividends, and total value for a stock over the next 5 years, assuming 10% annual EPS growth, a 12 P/E ratio, 90% dividend payout ratio, and a required 15% annual return. It calculates that the maximum purchase price that would be justified given these assumptions is $26.12.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Assumptions Year Earnings Dividend

    Year 1 EPS 2.90 1 2.90 0.26


    EPS Growth Factor 10.00% 2 3.19 0.29
    P/E Ratio 12 3 3.51 0.32
    Payout Ratio 9.00% 4 3.86 0.35
    Required Return 15.00% 5 4.25 0.38
    50.95 1.59

    Purchase Price Required


    26.12
    Total Value
    3.16
    3.48
    3.82
    4.21
    4.63
    52.54

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