Reference no: EM132587909 , Length: 1900 Words

Corporate Finance Assignment - Financial Analysis Paper

Netflix is the chosen company - Select a company on the NYSE Discuss how successful the company has been at delivering value to its shareholders over the past 5 years. ? Complete an EVA analysis of your company for the last 5 years. Don't simply use numbers but show working using final EVA numbers from another source.

Analyse the Total Shareholder Return (TSR) of the company for the past 5 years, including any key events and compare with a similar company or appropriate benchmark. Undertake a current valuation of the equity in this company, using the following methods: Net Asset Value.

Comparable Ratios (e.g. P/E, P/B, EV/EBITDA). You will need to look at both past results and comparable firms to analyse and justify an appropriate valuation. Note that simply multiplying the current ratio by the recent earnings (or book value or EBITDA) is not sufficient, good analysis on comparable ratios required.

Discounted Free Cash Flow. You will need to forecast each component of free cash flow (e.g. Sales, costs, capex, etc.) for at least 5 years of forecast cash flows and estimate a terminal value, and then discount them back at the appropriate cost of capital which you estimate yourself. Make sure to justify all of your assumptions. You can find information to support your forecasts from sources including the MD&A section of the company's annual report (or its competitors), news stories, industry trade publications and government or think tank studies on the industry. Attempt to reconcile any differences in value that you obtain by using these different methods and state (with reasons) what value you think is correct for the company. You must clearly explain all of your assumptions used in the valuations.

The report should include:

a key point summary of your conclusions

graphical illustration, where appropriate

a bibliography of sources of information used and references to texts or other material drawn upon copies of financial information should be placed in the appendices if they are necessary to understand your report. You should only include appendices if you refer to them in the body of the report. You do not need to include the entire financial statements.

HARVARD STYLE REFERENCING - Word count excludes referencing and bibliography - You should not embed spreadsheets in the Word document as they will not be seen by the marker. You should only copy those tables which are important for the reader to understand your work.

Note - Number of Pages 8, Citation Style: Harvard and Number of Sources: 20.