corporate finance case
Corporate Finance: Deadline: 13th of December, Time: 23:50, Turnitin submission. Filenames: surname_StudentID.docx, surname_StudentID.xlsx
Case study: Valuation of the company on IPO stage.
1.1. Case study: Alibaba
Read the article in Aswath Damodaran blog or in doc file attached:
http://aswathdamodaran.blogspot.com.es/2014/09/alibabas-coming-out-party-valued-right.html
2. Make a relative valuation in excel provided.
Explain your results.
4. You answer should consist of two things:
First: excel file with calculations [90% of grade]
Second: short report (no more than 500 words), compare all your 25 estimates with the actual IPO valuation. What are the methods that are more closer to actual values? Why? There is no one single answer to that question, so your ability to analyze will be evaluated. [10% grade].
1.2. Case study: some hints
EV=MV of equity + Debt – Cash
Intuition: how much we need money to acquire the firm.
PBV = MV of equity/ BV of equity
In computing 3-5: do not forget that you need to compute MV of equity not EV.
Invested capital = BV of equity + debt – cash
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