Valuation<\/strong><\/h2>\n\n\n\nFor Pulte Group, I will put together a discounted cash flow to give you an idea of a price range the company might trade. The valuation is not meant to be a price point to make a purchase but rather a guide to give you an idea of the value based on the current financials. I will also provide some of the inputs I am basing on the valuation.<\/p>\n\n\n\n
Assuming:<\/p>\n\n\n\n
Growth Rate of Net Income of 8%<\/p>\n\n\n\n
Discount Rate of<\/p>\n\n\n\n
Terminal Growth Rate of 2%<\/p>\n\n\n\n <\/figure>\n\n\n\n <\/figure><\/div>\n\n\n\n <\/figure><\/div>\n\n\n\n <\/figure><\/div>\n\n\n\n <\/figure><\/div>\n\n\n\nAssuming different discount rates, keeping the growth rate and terminal rate static, we get:<\/p>\n\n\n\n
7% – $62.36<\/p>\n\n\n\n
9% – $41.98<\/p>\n\n\n\n
Final Thoughts<\/strong><\/h2>\n\n\n\nThat is going to wrap up our summary of the first quarter results for Pulte Group. I hope you enjoyed the summary, and you find something that can help you in your investment journey.<\/p>\n\n\n\n
The above summary and valuation are not meant for investment advice and guidance, rather as a tool to understand the company and the possible value of the company. Before making any investment, please do your due diligence and investigations.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pulte Group (PHM) announced its first-quarter earnings of 2020 on April 23, 2020. The following report will be present a summary of those results; there will be no opinion offered on those results, just the facts reported in the company 10Q. Overview of Financial Results Pulte Group reported the first-quarter net income of $0.74 per […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[5954,931],"tags":[],"yst_prominent_words":[1655,1574,4608],"_links":{"self":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/10861"}],"collection":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/comments?post=10861"}],"version-history":[{"count":1,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/10861\/revisions"}],"predecessor-version":[{"id":20991,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/10861\/revisions\/20991"}],"wp:attachment":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/media?parent=10861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/categories?post=10861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/tags?post=10861"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/yst_prominent_words?post=10861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}