Estimate of snap stock price

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A Morgan Stanley analyst produced the financial forecasts provided in the attached Excel file shortly after the offering. The analyst assumed a WACC of 9.7% and 1,404 shares outstanding. Under these assumptions, what would be the discounted cash flow (DCF) estimate of Snap stock's fair market value on a per share basis?

a. How sensitive is this estimate of Snap's stock price to assumptions about growth and WACC?

b. Do the assumptions and forecasts appear reasonable? What data would you use to assess that?

c. Analyze Snap's DCF value under various alternative assumptions of your own.

Reference no: EM132794295

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