Valuation Project:
Your group write-up for the valuation project must not exceed five pages of reasonably sized text (at least 11 points). Supporting appendices should be concise and clear.
1. Industry background
- History and evolution of the industry
- Any past, ongoing, or anticipated merger wave?
- Industry concentration, C4 and C8
- Contribution to Turkish GDP and employment
2. Financing and valuation of firms in the industry
- Leverage, interest coverage
- Market-to-book and price-to-earnings ratios
- Firm size (assets, sales, market value of equity)
- Stock price performance
3. DCF valuation analysis for one firm
- What is the total (enterprise) value of the firm? What is the value of its equity?
- Is the stock currently under- or over-priced? Discuss why.
4. Optional commentary
Propose and discuss potential real and/or financing strategies that in your opinion would increase the firm’s value.