《project》.pdf

Valuation – Fundamentals Relative Approaches for a Sample of Seven Companies INTRINSIC VALUE VALUATION AXA Given the nature of the company (Mature, stable growth), the value estimates are particularly sensitive to the ROE and the dividend per share assumptions. I assumed an ROE equivalent to the average sector of 11.9 % and a dividend per share equal to 0.57 which I think is appropriate for a stable mature company. Based on this analysis, the price of the AXA stock should be 8.86 Euro or $11.77, which is below the actual price range of $ 23.7 that AXA is trading at currently. Risk Free Rate : 4 .35 % Risk Premium: 6.7 1% Beta: 0.94. The bottom Long term bond rate in Average risk premium of up beta based on the Euros company ’s businesses. Europe, Asia and the US weighted by the percentage of revenues. Cost of Equity : 10.6 1 % The bottom up beta based on the company ’s businesses. Value per share: 8.86 Euros ……………..Assuming stable growth rate of 2.87% Dividend Expected Growth Payout Ratio: 67.26% Retention Ratio: 32.74 % DPS: 0.57 ROE : 12 % Expected Growth rate: 3.9 %