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Tiffany & Company Stock Valuation Project

Company Overview
Tiffany & Company was founded in 1837 in New York. Traded publicly on the New York Stock Exchange under the symbol “TIF”. It is a retailer that engages in the design, manufacture, and retail of fine jewelry worldwide. It jewelry product include fine and solitaire jewelry; diamond engagement rings and wedding bands to brides and grooms; and non-gemstone, sterling silver goods, crystal, stationery, fragrances, personal accessories, and leather goods. It also sells its products through Internet; catalog sales, business-to-business sales and wholesale distribution primarily in the US, the Asia-Pacific, Japan and Europe. Now Tiffany has opened over 50 branch stores in the US. Japan is Tiffany’s next largest market, occupying more than 20 percent of its net sales.

“Tiffany standards have been the very measure of excellence in the realm of fine jewelry worldwide for more than 150 years.” Tiffany & Co has earned this reputation by ensuring each jewelry quality. There are two important features of Tiffany & Co. The first one is special design to make different people find out its beautiful. Everyone can buy a satisfying jewelry in the Tiffany. Another feature is distinctive box, which distinguish from other jewelry company to attract customers.

Year over Year, Tiffany &Co ‘s revenue has grown from $3.1 billion to $3.6 billion, while annual earning equaled $3.6 per share. At the same time, the percentage of sales assigned to selling, general and administrative costs from 39.2% to 38.43%. Net income increases from $220 million to $439.2 million.

In this project, I will use two methods to evaluate Tiffany’s intrinsic value which will compare with current stock price.

Discounted Dividend Valuation
This section mainly uses discounted dividend valuation to evaluate the stock’s price

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