Hi all!
I have an assignment that asked me to value a company and determine whether the company is over or under-valued.
The company is Harvey Norman. I am clueless how to value the company.
what valuation model is most appropriate for retail industry and why ?
(P/E ratio? , DDM? or others?)
If PE ratio was to be used, the formula is market price / earnings per share
the EPS is normally 1 yr forward estimate. HOW do u estimate the forward EPS?
and i also have to predict the holding period over which i expect the market to correct itself if the company is over or under-valued.
PLEASE I NEED HELP!!
thanks in advance
I have an assignment that asked me to value a company and determine whether the company is over or under-valued.
The company is Harvey Norman. I am clueless how to value the company.
what valuation model is most appropriate for retail industry and why ?
(P/E ratio? , DDM? or others?)
If PE ratio was to be used, the formula is market price / earnings per share
the EPS is normally 1 yr forward estimate. HOW do u estimate the forward EPS?
and i also have to predict the holding period over which i expect the market to correct itself if the company is over or under-valued.
PLEASE I NEED HELP!!
thanks in advance