Prepare dfcf stock valuation and eva or mva analysis

Assignment Help Microeconomics
Reference no: EM131257036

Assignment

Prepare DFCF Stock Valuation (Discounted Free Cash Flow Stock Valuation) and EVA/MVA Analysis

(Rev. 071216)

Students may elect to use the eVal Financial Forecasting Model or Prof. Stevens' Excel Discounted Free Cash Flow Valuation Model for the DCF Stock Valuation part of this assignment. If the eVal model is selected, make sure that financial information is available for the company that is selected for the assignment (See: https://www.lundholmandandsloan.com). Similarly, if Prof. Stevens' model is used for the assignment make sure that financial information is available (e.g., Yahoo Finance, etc.). (Note: Alternatively, the ValuePro.net model may be used for the DCF valuationbut the final score for the assignment will be reduced by 20% if that alternative is selected.)

The actual Excel forecasting model (either eVal or Prof. Stevens' model) must be submitted with the assignment.

The instructor's EVA/MVA Excel Model must be used for the EVA/MVA analysis. That model must be submitted with the assignment, too.

Assignment: DCF Valuation and EVA/MVA Analysis

Using the company that was selected for the class, there are two parts to this assignment:

1. DCF Company Valuation -

Prepare a DCF Valuation of the selected company using either: (a) the eVal Excel Model and the projections developed in Week 2, or, (b) Professor Stevens' Excel Financial Forecasting Model. Both of the models have an embedded worksheet that accommodates the Discounted Free Cash Flow stock valuation.

Make sure that the stock valuation model is submitted with the written analysis.

Discuss, interpret and explain the assumptions (variables) used in the analysis.

Discuss, interpret and explain the results of the analysis. This involves comparing the intrinsic value of the company's stock valuation to the current stock price and carefully explaining any differences.

2. EVA & MVA Analysis -

Prepare an analysis of EVA and MVA for the selected company. An Excel model is provided by the instructor. Explain the results.
Make sure that the EVA/MVA Excel model is submitted with the written analysis.

CONTENT OF THE ANALYSIS

The analysis associated with the two parts of the assignment needs to include:

1. Explanation of the Variables Used in the DCF Valuation - Explain and justify all of the variables used in the DCF valuation. These would include, but are not limited to, the growth rates, capitalization structure, cost of capital components, WACC, etc.

2. Explanation and Interpretation of DCF Valuation Results - Explain the results of the DCF analysis. This should include an analysis of any difference between the results of the DCF analysis and the current stock price.

3. Explanation of the Data Used for the EVA Analysis and Interpretation of Results - Present the results of the EVA analysis and explain what they mean. The analysis should discuss future EVA results and what variables can affect those results either positively or negatively.

4. Explanation of the Data Used for the MVA Analysis and Interpretation of Results - Present the results of the MVA analysis and explain what they mean. The analysis should explain a discussion of future MVA results and what variables can affect those results either positively or negatively.

Writing Instructions

The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be submitted limited to four separate attachments in an appendix after the written portion of the paper.

The paper should begin with a short introduction and then proceed to examine the four topics outlined in the previous section.

The subheadings used in the paper should be:

1. Introduction
2. Explanation of the Variables Used in the DCF Valuation
3. Explanation and Interpretation of DCF Valuation Results
(Including comparison and explanation of differences between the current stock price and results of the DCF valuation.)
4. Explanation of the Data Used for the EVA Analysis and Interpretation of Results
5. Explanation of the Data Used for the MVA Analysis and Interpretation of Results.

Reference no: EM131257036

Questions Cloud

Manager main sources of power : What were this manager's main sources of power? Include a discussion of reward power, legitimate power, and expert power as well as other sources of power discussed in the background readings.
Supervisor personality and leadership traits : How would you describe your supervisor's personality and leadership traits? Would you describe your supervisor's behavior as being task-oriented, or people-centered/relationship-oriented?
Evaluate aristotle six types of government : Evaluate Aristotle's six types of government. In doing so, please be sure to list and define the categorizations. Please then assess how these classifications can be useful today to someone analyzing current governmental structures.
Calculate the mean absolute deviation : Forecast the high temperature today, using a 2-day moving average. -  Calculate the mean absolute deviation based on a 2-day moving average.
Prepare dfcf stock valuation and eva or mva analysis : Prepare DFCF Stock Valuation (Discounted Free Cash Flow Stock Valuation) and EVA/MVA Analysis. Discuss, interpret and explain the assumptions (variables) used in the analysis.
Information about the articles : Part 1 of the critique consists of the identification of the articles. Be certain that you provide readers with enough information about the articles so they will be able to locate the articles.
Explore the manner in which each function contributes : Specify the key functional areas of Human Resources Management. Explore the manner in which each function contributes to the overall performance of an organization. Support your response with specific examples of the activities for which HRM is ty..
Find the me of changing regressors on the conditional mean : the AME using calculus methods for all regressors; and the MElt for someone who is privately insured, has a chronic condition, and has an income of $20,000 (so income-20).
What would be the forecast for august : What is the forecast for July? -  If the center received 45 million checks in July, what would be the forecast for August?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd