EXHIBIT 1
SELECTED ELEISURE INCOME STATEMENT DATA
| (HK$ millions, except shares outstanding) | 2014 |
|---|---|
| Sales | 3,110.56 |
| Pretax income | 551.22 |
| Income taxes | 135.48 |
| Net income | 415.74 |
| Dividends | 103.87 |
| Common shares outstanding (millions) | 89.54 |
EXHIBIT 2
SELECTED ELEISURE BALANCE SHEET DATA
| 2014 Cost (HK$ millions) | 2014 Market Value (HK$ millions) | |
|---|---|---|
| Cash | 490 | |
| Total assets | 4,235.58 | |
| Total debt | 1,051.96 | 997 |
| Common shareholders’ equity | 2,119.41 | |
| Non-controlling interest | 580 | |
| Total equity | 2,699.41 |
The current share price of eLeisure’s common equity is HK$31.28. Chen mentions to Yee that historically, the company has had a ratio of enterprise value (EV) to sales of 1.25×. She asks Yee to use the information in Exhibits 1 and 2 along with this metric to determine whether eLeisure’s common shares are appropriately priced.
Chen asks Yee to refine his analysis of the dividend growth rate and discount rates to value eLeisure’s equity. Yee looks at eLeisure in more detail and concludes that its expansion potential will likely follow three distinct stages of growth, provided in Exhibit 3. He also determines the long-term return on equity (ROE) for the stock and its required rate of return, which are also presented in Exhibit 3.
EXHIBIT 3
YEE’S ESTIMATES FOR ELEISURE
| 1. Estimated growth rates for eLeisure’s dividends | |||
| 2015–2017 | 2018–2021 | Beyond 2021 | |
|---|---|---|---|
| 19% | 10% | 5% | |
| 2. Other estimates for eLeisure | |||
| Long-term ROE | 15% | ||
| Required rate of return on the stock | 11% | ||
With these estimates, Yee determines the intrinsic value of eLeisure common stock using the dividend discount model (DDM).
Chen next instructs Yee to minimize the uncertainty in making assumptions about eLeisure’s future earnings and long-term dividend growth by using the residual income model. Yee uses the data in Exhibits 1, 2, and 3 to calculate eLeisure's intrinsic value per common share.
为什么不是按2015-2021年不同阶段增长率逐一计算呢？因为提到
intrinsic value？
