Editing Safran SA
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==== Equity valuation ==== | ==== Equity valuation ==== | ||
In the following table, we present the key values used in a DDM (Dividend Discount Model) analysis, including the CAPM model, risk-free rate of return, beta, market rate of return, and the corresponding | In the following table, we present the key values used in a DDM (Dividend Discount Model) analysis, including the CAPM model, risk-free rate of return, beta, market rate of return, and the corresponding discount rate. | ||
{| class="wikitable" | {| class="wikitable" | ||
!CAPM model | !CAPM model | ||
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|7.31% | |7.31% | ||
|- | |- | ||
| | |Discount rate | ||
|8.7% | |8.7% | ||
|} | |} | ||
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==== Inverse problem ==== | ==== Inverse problem ==== | ||
In this section, our objective is to calculate the necessary growth rate of Safran's stock to achieve its market value, assuming market efficiency. To achieve this, we will simply reverse the GGM formula to derive the | In this section, our objective is to calculate the necessary growth rate of Safran's stock to achieve its market value, assuming market efficiency. To achieve this, we will simply reverse the GGM formula to derive the discount rate. | ||
{| class="wikitable" | {| class="wikitable" | ||
| | | | ||
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|1.70% | |1.70% | ||
|- | |- | ||
! | !Discount rate | ||
|'''2.64%''' | |'''2.64%''' | ||
|} | |} | ||
=== Monte Carlo Simulations for Stock Price Predictions - Python Code === | === Monte Carlo Simulations for Stock Price Predictions - Python Code === |