JOHNSON & JOHNSON is the company to be used in the project. The student will determine for the company, its cash flow, growth rate, and discount rate. The student will use a discounted cash flow technique as well as relative valuation for determining the value of the companys common stock.
The specific components of the assignment should include:
1. A discussion of how the cash flow, growth rate, and discount rate were determined.
2. Implementation of the discounted cash flow valuation method.
3. A description of why the comparable companies were selected for implementation of the relative valuation method.
4. Implementation of the relative valuation method.
5. Recommendation of whether or not the companys stock should be bought
NB. Use the GuruFocus screenshots of Johnson & Johnson to find the necessary financial numbers for the project.
Attached below is a sample and an example of Tiffany & Co. of the calculations and methods for the valuation and relative valuation method.