Corporate finance paperoto understand the financial profile

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Reference no: EM13381975

Corporate finance paper

o To understand the financial profile of the selected company.

o To project future cash flows of the company, based on a business plan.

o To provide a valuation of the company

o Conclude with recommendations for investing or not in the equity of the firm.

Description and Structure

1. Financial analysis of the company for the last 3 years: profit generation, capital employed, financing, and return on capital (ROCE & ROE). Use the 4 phase method (profitability, asset management, financing, return on capital).

2. Calculation of the WACC, with assumptions and current market conditions.

3. Projections of the company's FCF for the next 3 to 5 years with appropriate assumptions beyond the selected horizon.

4. Valuation of company and of its shares:

a) Based on Comparable analysis.

b) Using DCF methodology.

5. Compare your estimates with the price of shares if your firm is listed. Would you invest today in the equity of this company, and why or why not?

Reference no: EM13381975

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