Discussion:
Brief paper (five pages maximum):
• Overall assessment of the company: Provide an assessment of the company and its industry, including the outlook for profitability and growth.
• Key factors relevant to valuing the company: Discuss the factors which you think are most important in determining the company's value and what you assumed about those factors.
These two part is what we need to deal with.
• Discussion of valuation results: Referring to a summary exhibit (see below), discuss the results of your valuations and what you conclude about the company's value. Do you think it's a good investment? Why/why not?
Exhibits showing your analysis (see next page for details):
1: Summary exhibit showing results of the different valuation methods, with dot points
summarizing your conclusions
2: Beta, kE and WACC results
3: Dividend discount model valuations
4: Free cash flow to the firm (FCFF) valuation
5: Multiples valuation
Attachments
• Printout of your Excel worksheet showing data used for beta regression and the Excel regression output (graph/trendline, ANOVA table)
• Value Line page for your company