World 219 - AE Task #2
Investment Banking Quantitative CalculationUsing a discounted cash flow (DCF) model, what is the implied share price under the following assumptions:
- Revenue growth is 2.0 percentage points lower than the current growth rates in each year from 2025 to 2030.
- Employee compensation and benefits as a percentage of revenue are 2.0 percentage points higher than the current figures in each year from 2025 to 2030.
- Mid-year convention is used.
I want you to (1) Tell me the implied share price using the Gordon Growth Method. Then, (2) tell me the implied share price using the Exit Multiple Approach. Reply to me with a message outlining these values in USD, rounded to two decimal places.
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