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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1692  
Subject: My Intrinsic Value for ABT Date: 2/18/2008 3:09 PM
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I own or am looking to buy more shares of Abbott Laboratories so I calculated the Intrinsic Value of the company's shares. Since I am usually willing to share information here is my result.

Abbott Laboratories Intrinsic Value = $74 - $76 per share.

Key assumptions: EPS Growth = 10% plus or minus 1/4%; 10-yr. Treas. = 5%,
ABT's WACC=7.4%, Company Beta = 0.85, Equity Risk Premium = 3% <could be low>

Recent stock quote = $57 1/2

Conclusion: BUY

Hedge clause: This message is neither an offer to buy or to sell the shares. Information obtained from sources believed to be reliable; the accuracy is not guaranteed. Prospective investors should do their own Homework before investing. Investing in stock entires a High Degree of RISK. Opinions and data can & will change at any time.

Copyright 2008, KahunaCFA - used with permission.
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