Could you help me to revise the company's forecasting value spreadsheet?

FIN 449

Individual equity valuation report

Project Assignment Description

Prof. Rogers

Fall 2018

DUE DATE: Sunday, November 11, 2018

· Please submit written document in soft copy (Word or PDF) into D2L assignment folder.

· Please submit Excel documentation (saved as macro-enabled Excel file…xlsm format) by e-mail to [email protected] .

· Both submissions should be received by 11:59 PM on Sunday, November 11, to avoid penalties.

Instructions:

1) Each individual must generate a forecast of income statements and balance sheets for their chosen company resulting in free cash flow estimates and a single value estimate equal to the traded price of their firm. The forecast horizon should be a minimum of five years and a maximum of 15 years. The written report should present and discuss the following specific components of the forecast and valuation:

· Market cap of equity estimate (please indicate relevant date of value estimate)

· Value per share estimate (please indicate relevant date of value estimate)

· Traded price per share (including the date associated with this price)

· Revenue forecast

· Profit forecast

· Investment forecast

· Debt forecast

· Free cash flow forecast (please specify whether FCFE or FCFF is used)

· Cost of capital estimates used

· Terminal value estimate

The report is limited to a maximum of five pages (double-spaced), and this page limit includes data exhibits.

Each individual will be evaluated based on my equally weighted assessments of the following:

1) The “closeness” of the value estimate to the traded price,

2) the degree to which the forecast and valuation avoids problems of “economic logic.”

3) the degree to which the report focuses on the “big picture” metrics

4) the degree to which the report information is consistent with the information in the individual’s Excel file).

This assignment is worth 15% of the course grade.

NOTE: grades will be determined from ratings on a 0 – 4 point scale (4 = excellent; 3 = good; 2 = adequate; 1 = below average; 0 = below standard for passing). The ratings will be provided for each assessment discussed above, and the average rating will be converted into a percentage score for grading purposes based on my general grading principles discussed in the course syllabus.