Bloomberg wacc data

(1) Read the attached Bloomberg Businessweek article about General Electric.

(2) Complete the case study activity on Equity Valuations which requires the use of the Bloomberg terminal to complete an assignment. There are

Weighted Average Cost of Capital (WACC) which requires the use of the Bloomberg terminal to investigate Disney's WACC. There are 6 items required in this case. Items 1 - 5 will count 16 points each; Item 6 will count 20 pointsCASE STUDY EQUITY ANALYSIS & VALUATION Understand and compare the theoretical equity valuation methods to the more commonly-used multiple valuation approach, and then apply these tools to value a company. This supplement explores the reasoning behind and the disadvantages of the three theoretical equity valuation models—constant growth model, multi-stage growth model, and dividend discount model—by comparing them to the most frequently-used market multiple valuation approach through the lens of General Electric (GE). Subsequently, we will do the same valuations and comparisons with The Walt Disney Company (Disney) for homework. Disney Segment Revenues and Operating Income All Data from Fiscal Year 2017 in Millions, Except Percentages Revenues % of Total Operating Income % of Total 18,415 33% 3,774 26% Studio Entertainment 8,379 15% 2,355 16% Consumer Products 4,833 9% 1,744 12% Media Networks 23,510 43% 6,902 47% Total 55,137 Parks and Resorts 14,755 Source: The Walt Disney Company Annual Report (10-K) Materials Disney Operating Margins by Segment and Consolidated All Data from Fiscal Year 2017 in Millions, Except Percentages 40% 36% 35% HOMEWORK CASE STUDY HANDOUT The Case Study reinforces the class lesson. 25% 29% 28% 30% 25% 20% 20% TERMINAL TUTORIAL VIDEO A brief video explains how to gather equity data from the Bloomberg terminal. 15% 10% 5% 0% Web: https://vimeo.com/300775187/3a3918015e Terminal: PLYR VOD 332919111 Parks and Resorts Case Study Use the information below to guide your responses to each question. HOW DISNEY MAKES MONEY Disney has four operating segments: parks and resorts, studio entertainment, consumer products, and media networks. The table below shows the proportion of Disney’s total revenues and operating income that come from each segment. Studio Entertainment Consumer Products Media Networks Disney Consolidated THINKING ABOUT VALUATION Consider purchasing a house. The fundamental valuation metric in a house purchase is square feet. A person interested in purchasing a house should look at the listing price per square foot and compare it to the price per square foot of other houses that recently sold in the area. If the current market for new homes is $112 per square foot and the target home is listed at $124 per square foot, the target home may be overvalued. Focus on the word may. It may be that the target home is superior to the properties used as comparables. Perhaps the target home is in a nicer neighborhood or is built to a higher standard or has other characteristics that warrant a premium to the comparable properties. All of these characteristics need to be considered. But the beginning point of any valuation is uncovering the fundamental valuation metric of the asset, which in the case of our real estate example, is square feet. © Bloomberg L.P. Equity Analysis and Valuation Case Study When valuing stock, the fundamental valuation metric may be profit, cash flow, or dividends.