Describe the relative valuation approach to estimating the value of a stock

 

 

 

describe the difference between growth stocks and value stocks. Growth stocks
make good investments, do you agree with this statement? Be thorough in your
discussion.

describe the relative valuation approach to estimating the value of a stock (using
the P/E ratio approach). Be sure to discuss how to estimate sales, profit margins, and
earnings multipliers. Provide an example using your own numbers (it could be from one
of your StockTrak stocks).

discuss and explain how to estimate the intrinsic value of a company using the
present value of dividends model (Chapter 14, please be thorough in your discussion; be
sure to discuss how to estimate g (the growth rate) and k (the required rate of return)).
Please provide an example with numerical values.

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