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Dcf forecast

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Reference no: EM133123099

Part 1: DCF Forecast

1. Select a publicly held company of your choice. MICROSOFT

2. Perform a DCF with Terminal Value (5 years only) to determine your estimate of the value of the company.

3. Make sure that you state your assumptions on the same excel spreadsheet.

4. For your cash flow numbers use the formula used in the text, page 548: NOPAT + Depr - CAPEX - Increase in NWC

5. How does your calculation compare to the current share price?

6. Try to explain WHY your numbers match or do not match the current market value

Part 2: Market Multiples to Determine Terminal Value

1. Then, determine the Enterprise Value/EBIT.

2. Compare it to two competitors' EV/EBIT

Research in webs like yahoo finances for the numbers

Reference no: EM133123099

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