Prepare a dcf analysis on amd

Assignment Help Financial Accounting
Reference no: EM134556

Prepare a DCF analysis on AMD· Ultimate goal is for to determine a range of implied AMD share price you believe is related - DCF starting from 2008 to 2020· When showing your homework, we will probe: o Why you select some assumptions on financials o Why you choose some assumptions on WACC / terminal value growth o Why you select some assumptions in creating the sensitivity tables

1. Why you select some assumptions on financials

2. Why you select some assumptions on WACC /terminal value growth

3. Why you select some assumptions in creating the sensitivity tables

Actual   Broker consensus   ATIC estimates
2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

Revenue
       
% growth
       
EBITDA
 
   
% growth
       
% margin
       
D & A
 
   
% capex
       
EBIT
 
   
% margin
       
NOPLAT tax
 
   
Tax rate %        


 
   
NOPLAT
 
   
% margin
       


 
   
D & A (add back)  
   
Capex
 
   
% revenue        
Change in WC  
   
% revenue        
           
Free Cash Flow        
% growth
 
   
% margin
 
   
Cash conversion (FCF/EBITDA)  
   



Terminal growth

EBITDA exit multiple

#DIV/0!          
0          

  #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.0% 0 0 0 0 0

  #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.0% 0 0 0 0 0
WACC   #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! WACC 0.0% 0 0 0 0 0

  #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.0% 0 0 0 0 0

  #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.0% 0 0 0 0 0

WACC Assumptions & Calculation  
WACC (public company)  
Cost of Equity (Ke)    
Risk free rate (rf)    
Beta       
Market risk premium (rm-rf)  
MV of Equity    
Equity/Total Capital    
Net cost of debt    
Risk free rate (rf)    
Debt premium    
Gross cost of debt    
Tax rate      
BV of Debt/(Cash)    
Debt/Total Capital    
MV of Total Capital    

WACC = Weighted Average Cost of Capital

βu = βl / {1 + [(1 - t)D/E]}

Keu = rf + βu(rm - rf)

Kel = rf + βl(rm - rf)

WACC = D/D+E(1-t)Kd + E/D+Ekel

Reference no: EM134556

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