Submission Consists of both theo Project report and theo Excel spreadsheet(s) with all calculations. Failure to submit your Excel calculationswould render the corresponding sections in the Report invalid Required elements of the project ReportBrief company descrption Start with brief discussion of the industry characteristics Point out only the most relevant for valuation company features, such as the nature of theirbusiness, how the make money etc. What are the key drivers of value for your company?Strategy discussion Using the MD&A provide brief descriptions of companies strategy and analysis of theindustry sector they operate in the framework of the Porters five forcesDiscounted cash flow valuation This should be the main part of your project. Value the stock of the company using one of the following main discounted cash flowmodelso Free cash flow (FCF) valuationo Residual income (RI) valuation You have the discretion to choose the model that you think is most appropriate for yourcompanies. Justify your choice! Include a discussion and calculation of the appropriate discount rate Dividend discount method (DDM) can only be used as a supplemental valuation model. Itdoes not count as a main valuation tool for the purposes of the project. Estimate how sensitive your value estimates are to changes in your assumptions. Identify the key assumption or variable that you would focus on in doing your discountedcash flow valuation. Examples would include the growth rate assumption, the growth periodassumption, the net capital expenditure assumption etc.Value relative to comparables Prepare a list of “comparable” companies, using criteria that you think are appropriate Choose the multiples that you will use in comparing firms across the group. Justify yourchoice. Present in a table format the essential features of your company and the comparables, suchas P/E, growth, profitability measures etc. Discuss your selection of features! Evaluate your companies against the comparable firms using the multiple(s) that you havechosen for your valuation.Final value estimate and recommendation Consider the values you have obtained from the discounted cash flow, and relative valuationmodels. How would you reconcile the different estimates of value? Make a final recommendation (STRONG BUY / BUY /HOLD / SELL) on the stock and justify
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]