CALCULATION OF INTRINSIC VALUE 1) Average dividend pay out ratio
= 0+0+0+.16+.29/5 = 0.09
2) Average retention ratio
= 1- 0.09 = 0.91
3) Average return on equity
= .20+.15+.15+.18+.18/5 = 0.172
4) Growth in equity
= .91 * .172 = 0.15652
5) Normalized avg PE ratio
= 16.81+21.08+45.26+47.15+31.71/5 = 32.402
6) Long term growth in dividend & equity = 32.402 * .91 = 29.48582 7) Projected EPS
= 83.06*(1+0.15652) = 96.0605512
8) Intrinsic value
= 96.0605512 * 32.402 = 3112.5539799824
9) Projected DPS
= 0 *(1+0.15652) =0
81