Develop a company valuation model

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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

Reference no: EM132270117

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Reviews

len2270117

3/30/2019 12:47:41 AM

Instructions: I have attached the project files. THE COMPANY NAME FOR THE PROJECT IS FISHER PAYKEL HEALTHCARE. ALSO PLEASE COMPLETE THE PROJECT ON THE EXCEL FILE ATTACHED. The model will only be marked if it is built within the spreadsheet file "2_Valuation - Project 1 (V1 2019).xlsm" available from AUT Online. Students are expected to be able to explain or demonstrate any features or techniques in their assignments if requested.

len2270117

3/30/2019 12:47:35 AM

To receive an A Grade, students must ensure their model meets the following requirements: Model - Model contains financial statements that incorporate considerable information from the notes to the financial statements and external sources and contain only items that are suitable for forecasting with all others consolidated appropriately, Model contains suitable forecasting methods for all values, Assumptions are listed with excellent justification for most items, Company valuation is accurate given the inputs without excessive changes in values or plugs, Weighted Average Cost of Capital is correctly calculated, Model correctly calculates the beta of the company with the option of using a variety of different periods and frequencies, Model correctly calculates the financial cash flows.

len2270117

3/30/2019 12:47:30 AM

Layout - Calculator conforms to the following rules of good design, Clear separation of inputs and outputs, Formulas are correct and correctly linked, Employs menus to make the model easy to use, Changes to assumptions used to forecast financial statements are easy to do, Report attempts to justify the assumptions made very clearly, Model outlines key findings exceptionally clearly. Features - Data validation is employed in the summary sheet to prevent inappropriate inputs for all inputs, Excel controls are used extensively to make changes to the model easy and intuitive, Model contains a well set out and easy to understand summary page containing all key inputs and highlighting the key findings and other key information, Model employs sensitivity analysis to examine the effect of changes in key drivers of value.

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