Reference no: EM132270117
PROJECT - COMPANY VALUATION
Develop a company valuation model using the discounted cash flow valuation and other methods for a company they will select.
THE COMPANY FOR THE PROJECT IS FISHER PAYKEL HEALTHCARE.
Financial statements that are forecasted 5 years into the future based on the 5 years' worth of past information provided. (Balance Sheet, Income Statement, Cash flow Statement)
- Assumptions made in forecasting the future should be identified and justified with reference to past financial information, other annual report information and any other information sources that the student deems important.
- All assumptions made by the student should be reasonable and justified.
- The model should also contain opportunities for the user to change key inputs to assess the impact on the firm's value.
- Students should feel free to add in additional information from the annual reports where it will add value to their model i.e. segmented revenue information or more detailed expense data.
The model should accurately compute the weighted average cost of capital and beta with the option of allowing users to alter the period and frequency of the beta used in the calculation of the WACC (i.e. one year daily data versus five years monthly).
Accurately employ the Free Cash flows formula to compute the cash flows for the next 5 years based on the forecasted financial statements' information, and then use the Discounted Cash flow and/or other methodologies to compute the value of the company and hence stock price.
Model should contain a summary page that brings together key inputs and key outputs.
Model should be able to: (1) outline and justify the key assumptions made, and (2) outline the key conclusions and recommendations based on the results.
The valuation model should conform to the rules of good financial model design.
Attachment:- Assignment Files.rar