INSTRUCTIONSValuation homework is 20 points.  Get to know your company, the business lines, owners2) Using the excel template we created in class,

INSTRUCTIONS

  1. Valuation homework is 20 points.  Get to know your company, the business lines, owners2) Using the excel template we created in class, forecast the next 10 years of the company. Change the assumptions as you wish. Make them more appropriate to your company’s past and your personal belief as to what would happen in the future. Clearly state your new assumptions.3) Provide a table of your assumptions and resulting FCFs.4) Provide a DCF analysis including your WACC assumptions.5) Provide a sensitivity analysis table. Choose variables that have changed more than others in the past. Make sure to provide both upsides and downsides.6) Using PE of 8 and EV/EBITDA of 6 as peer multiples, perform a peer multiple valuation.7) Using subjective weights combine DCF and peer analyses and reach to a 12 month target price.8) Conclude your valuation and provide a recommendation.
    Since you will not have the chance to talk to company management and ask questions, and you have limited time, please do not lose time in trying to forecast the future with great accuracy. The only thing I want is consistency.  (e.g. lots of growth with no capex is inconsistent)

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