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ACCOUNTING ASSIGNMENT
Berkshire Hathaway vs Disney Using last 3 years information Using valuation models. a. Choose the most under- valued item which has the largest gap between the intrinsic value from the model and the current market value. b. Methods to find intrinsic values: i. Present value methods: 1. Cash flow based. 2. Earnings based. 3. Dividend based. ii. CAPM for expected return: Ri = Rf +βi (E(Rm) – Rf ) +εi Other methods to find under-valued stocks: a. Using P/E ratios b. Using BV/MV ratios.
