Company Valuation Project
InstructionsfortheProject
Students are required to develop a company valuation model using the discounted cashflowvaluation and other methods for a company publicly listed on the New Zealands Exchange(NZX). The company of your project will be assigned by the lecturer. Please see the Canvasforyour assigned company. The model shouldcontain:
- Financial statements that are forecasted 5 years into the future based on the 5 yearsworth of past information provided. (Balance Sheet, Income Statement, CashflowStatement)
- Assumptions made in forecasting the future should be identified and justifiedwithreferencetopastfinancialinformation,otherannualreportinformationandanyother informationsources thatthe studentdeems important.
- Allassumptionsmadebythestudentshouldbereasonableand
- The model should also contain opportunities for the user to change key inputstoassess the impact on the firms value.
- Students should feel free to add in additional information from the annualreportswhereitwilladdvaluetotheirmodele.segmentedrevenueinformationormoredetailedexpensedata,orconsolidateitemswhereforecastingmakes no sense.
- The model should accurately compute the weighted average cost of capital and beta,at a minimum based on five years of monthly data. Better solutions will offer the userthe option of altering the period and frequency of the beta used in the calculation oftheWACC (i.e. one yeardaily data)
- Accurately employ the Free Cashflows formula to compute the cashflows for the next5 years based on the forecasted financial statements information, and then use theDiscounted Cashflow and/or other relative methodologies to compute the value of thecompanyand hence stock price.
- Modelshouldcontainasummarypagethatbringstogetherkeyinputsandkey
- Thevaluationmodelshouldconformtotherulesofgoodfinancialmodel