1. E-commerce
... truly a global company, and this helps diversify some of its risk. Further evidence of this low risk is evidenced by its low beta of 0.90. DCF and EP Valuation Models Discounted cash flow and economic profit valuation models yield a target price of $47.93. Key assumptions that were used in the valuation models include a five year monthly beta of 0.90, a risk ... free rate based on the ten year T-Bond of 4.0%, a cost of capital of 8.21%, continuing value growth of 3% and an operating margin of 39.3%. In deriving the discounted cash flow valuation model, a sensitivity analysis was perform...
- Word Count: 1788
- Approx Pages: 7
- Grade Level: High School