Model - Share Price Range
- 01:27
Review the use of the 52 week trading range in the valuation football field
Glossary
Football Field Last 52 WeeksTranscript
The share price range gives us a reference for where the share price has been trading over the last 52 weeks We can get these from the Tumi 1 tab, so I press equals, I go to the Tumi 1 tab And there it is, I've got my 52 week high and my 52 week low. I'll go with my low first And then grab the Now as I said, that's a reference point, I can put my other valuation numbers into that range So if we have a quick look, my EV/ EBITDA is coming around about 17-19 dollars My P/E is giving me a 17 dollar range and my DCF (a little higher) 20-23. We might expect the DCF to be a little bit higher than the others Because the markets not so good at putting in the future growth, into the share price All of those figures seem to be roughly about mid way through the 52 week range, o that gives me a little of comfort in the valuation ranges I've come up with If the valuation ranges were all at the very low point of the 52 week range or at the very high Then that doesn't necessarily mean that my figures are wrong, I just need to ask myself "Am I happy why that's happened?" Am I happy my figures are correct or can I explain why the share price is trading so high or so low