Stock Price Valuation with Intrinsic PBR and Regression

Excel Template to compare the PBR of Tesla and Toyota and the market valuation of Telecom companies

 

This Excel pricing model is primarily divided into two parts. The first part is the PBR valuation for Tesla and Toyota, and the second part is the stock price valuation for six telecom companies listed in the US and UK with a regression analysis. 

 

 

Evaluation of the PBR of Tesla and Toyota

With the recent surge in stock price, Tesla has begun to gain attention in the stock market more than before. By market cap, Tesla is the world’s No. 1 in the automobile manufacturing industry. Its PBR is 42. In the meanwhile, Toyota has a PBR lower than 1.

 

Therefore, we will try to value the stock price of the two companies based on the intrinsic PBR calculated by the fundamental factors. 

 

 

PBR analysis for Telecom companies with regression analysis

It selects six telecommunications companies listed in the US and UK with a market cap of more than $10 billion. Each company’s PBR ranges from 0.55 to 3.91. In terms of the market PBR alone, Vodafone is most undervalued, and Verizon is most overvalued. 

 

You will see whether each company has a proper market PBR through regression analysis with the variables of ROE and growth rate. 

 

 

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Step 1

They are Tesla and Toyota’s market cap, share price, book value per share, and market PBR.

 

 

Step 2

The cost of equity is one of the factors to obtain intrinsic PBR. It uses the CAPM model to get it.

 

 

Step 3

 It calculates the intrinsic PBR with ROE, cost of equity, and the growth rate provided by Thomson Reuters.

Compared that to the market PBR on the first screen, you can see that Tesla’s PBR is overvalued and Toyota is undervalued.

 

 

Step 4

 There are six large telecom companies listed in the US and UK. They are their market data; market cap, PBR, ROE, and the growth rate over the next five years from Thomson Reuters.

 

 

Step 5

This is the result of regression analysis by growth rate and ROE.

By comparing this theoretical PBR with the market PBR of the previous screen, you can see which stocks are undervalued or overvalued.

 

 

 

Download Excel Financial Model

The template is organised as follows.

  1. Cover
  2. Tesla and Toyota market data
  3. Tesla and Toyota equity Cost
  4. Intrinsic PBR of Tesla and Toyota
  5. List of six major telecom companies listed on the US and UK stock market
  6. Regression analysis by the telecom companies’ ROE and growth rate

 

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