MBA Corporate Finance Midterm Project: Company MBA-FIN602

MBA Corporate Finance Midterm Project Company Valuation

Project Overview

For this midterm project, you will conduct a valuation of a publicly traded company of your choice using:

1. Discounted Cash Flow (DCF) Valuation (50%)
2. Relative Valuation using Comparable Companies (30%)
3. Short Essay & Data Source Disclosure (20%)

You must use real-world financial data from reputable sources (e.g., SEC filings, company annual reports, Bloomberg, Yahoo Finance). No hypothetical data is allowed.

Project Requirements

1. Discounted Cash Flow (DCF) Valuation (50 points)

Using real financial data, construct a complete DCF model that includes:

• Free Cash Flow (FCF) Forecast:
  
  

• -Project FCF for at least five years using logical and well-supported growth
  • Terminal Value Calculation:
    
    
• -Choose between Gordon Growth Model or Exit Multiple Method, and explain your choice.
  • Discount Rate (WACC) Calculation:
    
    
• -Use the Capital Asset Pricing Model (CAPM) to estimate WACC with real- world inputs (risk-free rate, market return, beta, capital structure).
  • Sensitivity Analysis:
    
    
• -Perform at least one sensitivity analysis on a key assumption (e.g., discount rate, growth rate, margin).
  • Excel File Requirements:

• -Must contain clear labels, intact formulas, and references to data
  
  

2. Relative Valuation (30 points)

Compare your chosen company to at least three real comparable firms, using:

• Key Valuation Multiples:
  
  
• -P/E (Price-to-Earnings)

• -EV/EBITDA (Enterprise Value to EBITDA)
  • Comparable Firm Selection:
    
    
• -Justify why you selected the peer firms and any necessary adjustments made to account for differences in size, industry, or risk.
  • Analysis & Comparison:
    
    
• -Discuss whether the relative valuation aligns with your DCF result and explain any discrepancies.
  • Excel File Requirements:
    
    
• -Well-organized spreadsheet with proper calculations.
  
  

3. Short Essay & Data Source Disclosure (20 points)

Write a 2-4 page essay discussing:

• DCF Assumptions:

• -Justify key inputs (revenue growth, discount rate, margin assumptions, ).
  • Selection of Comparable Firms:
    
    
• -Explain why you chose the peer companies and any adjustments
  • Valuation Methodology & Limitations:
    
    
• -Compare DCF Relative Valuation, and discuss strengths and weaknesses of each approach.
  
  
• -Identify potential sources of error or uncertainty in your
  • Disclosure of References & Data Sources:

• - Clearly cite all sources used, including financial statements, industry reports, and databases (e.g., SEC filings, Bloomberg, Yahoo Finance, FactSet, Capital IQ, Reuters, or Macrotrends).
  
  
• -Submissions without proper citations will be
  • AI Usage Disclosure:
    
    
• -If you use AI tools (e.g., ChatGPT, Excel AI, Bloomberg GPT), disclose how you used them in the essay.
  
  
• -Over-reliance on AI without demonstration of financial reasoning will negatively impact your grade.
  
  

Submission Guidelines

• ExcelFile: Clearly labeled with structured calculations and source
• ShortEssay: Submit as a PDF or Word document with proper
• Deadline: March 2 2025 11:59pm Late submissions will be penalized unless prior approvalis Every day delayed will result in a 10?duction to your full points.

Grading Rubric (100 Points Total)