Estimation of Stock Price: A Case Study of JB Hi-Fi Limited

Abstract

As a major part of the security market, stock market now has become an important financing channel of most corporations. The pricing researches of stock market have great theoretical and practical significance. Against this background, this paper discusses the calculation process of stock price of JB Hi-Fi Limited and analyzes it by discussing and calculating the relevant financial statistics which would be based on different data resources. Specifically, based on the adjusted stock prices of JB Hi-Fi Limited from 31 May 2012 to 30 April 2017, we calculate the beta coefficient of JB Hi-Fi. Then, we estimate the stock price of JB Hi-Fi using single-stage and two-stage model respectively and compare the theoretical stock price with the actual price. Finally, we provide some recommendations for stock investors.