BBBY Intrinsic Value this page is 56.85

This is from . Here I used the givens that the program defaults to. Intrinsic value is 56.85. see givens below. Notice the shares outstanding, growth rate, depreciation rate and projected f2003 revenues.

I changed those assumptions in the following examples

click on the following 2 links !!!!

1. growth rate of 15 % notice how intrinsic value becomes 36.63

2. growth rate of 10 % notice how intrinsic value becomes 26.90

Online Valuation for BBBY – 8 / 6 / 2003

Intrinsic Stock Value               

Excess Return Period (yrs)     Depreciation Rate (% of Rev)   

Revenues ($mil)                      Investment Rate (% of Rev)     

Growth Rate (%)                      Working Capital (% of Rev)      

Net Oper. Profit Margin (%)      Short-Term Assets ($mil)         

Tax Rate (%)                             Short-Term Liab. ($mil)           

Stock Price ($)                           Equity Risk Premium (%)        

Shares Outstanding (mil)           Company Beta                        

10-Yr Treasury Yield (%)            Value Debt Out. ($mil)            

Bond Spread Treasury (%)         Value Pref. Stock Out. ($mil)  

Preferred Stock Yield (%)            Company WACC (%)