ERP 4.60%
Cost of equity 9.21%
Current divided yeild 1.35% Buyback yield 2.76% Total yield 4.11%
S&P index 5277
Analysts estimation of growth for next 5 years 8.50%
Expeted growth after 5 years 4%
Current Dividend 216.88
Year 1 2 3 4 5 6
Expected dividends 235.32 255.32 277.02 300.57 326.12 6509.88
PV 215.47 214.07 212.68 211.30 209.93 3837.06
Total PV 4900.52
Based on the present value, I conclude the S&P 500 is over valued at 5277.
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