Company name is CDA codan limited.. we just need 10 slides of share valuation on dat company. No...

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Company name is CDA codan limited.. we just need 10 slides of share valuation on dat company. No figures please. And no information about the company

Shakeel · Accepted Answer

Slide 1
Stock valuation of 
CDA Codan ltd.
Presented by
……………………………..
Valuation Approaches
Discounted Cash Flow (DCF) Approach
Price Earnings (P/E) Approach
DCF Approach
Under DCF Approach, all the expected cash flows associated with the stock is discounted by an appropriate discount rate (cost of equity) to find the intrinsic value of share.
The expected cash flows associated with the stocks are generally in the form of dividends.
Gordon’s Dividend growth rate model is used under DCF approach. 
According to the characteristics of dividend growth rate, Gordon’s Constant growth rate model or 2 stage growth rate model is used.
Gordon’s Constant growth rate model
Under this model, it is assumed that dividend grows at fixed growth rate in perpetuity.
Mathematically, it is represented as –
D1 : it is next year’s expected dividend per share
Ke: discount rate or Cost of equity estimated using the CAPM
g: expected dividend growth rate (assumed to be constant)
Calculation of variables
Cost of Equity using CAPM –
Beta of stock, β = 0.67
Risk free rate of return, Rf = 2.68%
Market return, Rm = 10.40%
Hence, According to CAPM,
Cost of Equity,

Company name is CDA codan limited.. we just need 10 slides of share valuation on dat company. No figures please. And no information about the company

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