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AEO must grow earnings at a rate of -0.6% annually for 10 years to justify its current stock price of $17.22 If we assume initial earnings of $410 million grow at a rate of 0.00%, and we discount those future earnings at a rate of 15.00%, we arrive at a net present value for the company's next 10 years of earnings of $2.06 billion. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of $1.79 billion. To complete the calculation we add these two figures together, subtract the long-term debt for AEO ($0), and divide by the outstanding shares (214 million) to get a per share intrinsic value of $17.97.

ITU must grow earnings at a rate of -0.8% annually for 10 years to justify its current stock price of $24.27 If we assume initial earnings of $4.48 billion grow at a rate of 0.00%, and we discount those future earnings at a rate of 16.00%, we arrive at a net present value for the company's next 10 years of earnings of $21.7 billion. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of $18.0 billion. To complete the calculation we add these two figures together, subtract the long-term debt for ITU ($10.5 billion), and divide by the outstanding shares (1.12 billion) to get a per share intrinsic value of $26.14.

SIG must grow earnings at a rate of -1.6% annually for 10 years to justify its current stock price of $11.15 If we assume initial earnings of $273 million grow at a rate of 0.00%, and we discount those future earnings at a rate of 15.00%, we arrive at a net present value for the company's next 10 years of earnings of $1.37 billion. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of $1.19 billion. To complete the calculation we add these two figures together, subtract the long-term debt for SIG ($380 million), and divide by the outstanding shares (171 million) to get a per share intrinsic value of $12.77.

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