Attached for this discussion is the MS Excel Visa Discounted Cash Flow model. The DCF can be used to estimate the value of future cash flows and the impact upon the current value of the stock price. As reported in Morningstar, Visa reported FCF of 11,995 (million) in 2018. To perform this calculation, we first calculate the Discounted Free Cash Flow using the model from Chapter 9 (figure 9.21). Using this information, we project the future cash flows based upon a fixed growth rate. Assumptions for Calculations Assumptions FCF Annual Growth 15% Discount Rate 8.0% Shares outstanding 2231 Debt 16630 Cash 11709 In your initial response, critically analyze the assumptions, potential errors, and modifications you might make in your estimations for the valuation of Visa stock price using the provided MS Excel Module 5 Visa DCF. In your responses to peers, critically evaluate the limitations with the DCF model, analyze another method of stock valuation which could be used with potential advantages or disadvantages, or utilize the MS Excel Visa DCF model to calculate the stock price for Mastercard.

Assumptions for Calculations

Assumptions
FCF Annual Growth	15%
Discount Rate	8.0%
Shares outstanding	2231
Debt	16630
Cash	11709

In your initial response, critically analyze the assumptions, potential errors, and modifications you might make in your estimations for the valuation of Visa stock price using the provided MS Excel Module 5 Visa DCF. In your responses to peers, critically evaluate the limitations with the DCF model, analyze another method of stock valuation which could be used with potential advantages or disadvantages, or utilize the MS Excel Visa DCF model to calculate the stock price for Mastercard.

Students are to provide original and thoughtful contributions to the discussion questions and comments presented by instructor. Each student is to respond to the weekly discussion question and respond to at least TWO other students' posting during the unit. Participation assessment will be based on not only frequency, but also quality of content and use of course and outside-of-course resources to support your position or analysis.