Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Can you check if the second table is correct? Please show the formulas if it isn't. Accenture (ACN) Facebook (FB) Price Per Share $276.95 Fully

image text in transcribedimage text in transcribed

Can you check if the second table is correct? Please show the formulas if it isn't.

Accenture (ACN) Facebook (FB) Price Per Share $276.95 Fully Diluted Shares, Current Year 2,879 Market Value $797,339 Cash, 2020E $65,260 Debt, 2020E $0 Enterprise Value $732,079 Revenue, 2021E $105,414 Revenue, 2022E $126,750 EBITDA, 2021E $53,500 EBITDA, 2022E $66,500 EPS, 2021E $11.05 EPS, 2022E $13.68 Non GAAP EPS, 2021E $12.77 Non GAAP EPS, 2022E $15.59 Equity, 2021 $164,528 Equity, 2022 $210,617 Non GAAP Net Income, 2021E $32,173 Non GAAP Net Income, 2022E $39,572 Free Cash Flow, 2021E $26,640 Free Cash Flow, 2022E $34,972 Source: Analyst Reports, FactSet, Businessinsider $241.78 664 160,469 $8,215 $0 152,254 $46,546 $50,207 $8,138 $8,783 $8.00 $8.81 $8.00 $8.81 $18,802 $21,106 $6,878 $7,523 $6,277 $7,404 Alphabet (GOOGL) $1,772.26 682 1,209,355 $23,573 $13,960 1,199,742 $164,513 $189,902 $78,328 $92,427 $39.48 $52.03 $55.75 $70.49 $259,170 $311,841 $38,365 $48,903 $48,173 $56,925 P&G (PG) $144.47 2,626 379,378 $16,181 $34,720 397,917 $74,707 $77,343 $20,807 $22,020 $5.55 $5.95 $5.55 $5.95 $52,519 $54,372 $14,465 $15,367 $15,199 $16,179 Pinterest (PINS) $62.32 601 37,426 $1,650 $0 35,776 $2,234 $2,761 $613 $1,003 $0.08 $0.25 $0.92 $1.47 $2,787 $3,744 $57 $410 $267 $615 Trip Snapchat (SNAP) $40.43 1,469 59,401 $863 $1,881 60,419 $3,344 $4,076 $343 $802 ($0.44) na $0.08 $0.35 $2,090 $2,612 $132 $585 $208 $890 Advisor (TRIP) $25.48 134 3,419 $1,079 $1,192 3,532 $1,137 $1,404 $227 $326 ($0.43) na $0.22 $0.77 $876 $1,003 $30 $106 $133 $245 Twitter (TWTR) $43.48 786 34,171 $8,000 $4,300 30,471 $4,386 $5,120 $1,357 $1,678 ($1.65) ($0.75) $0.90 $1.14 $8,150 $8,928 $691 $900 $643 $976 Yelp (YELP) $29.09 73 2,127 $356 $161 1,932 $982 $1,033 $101 $122 $0.46 na $1.65 $1.77 $766 $916 $127 $136 $131 $167 Define the 'Comps' and Calculate the Selected 'Comps' Average Multiples (1) Calculate the multiples in rows 67 to 70 for columns G to N. (2) In row 73, enter TRUE if the company is a comparable with FB and FALSE if not. Hint: There are two companies that are not strong comparables for Facebook (3) In row 74, enter TRUE if any of the multples you calculated in Step (1) are NOT anomolous, and enter FALSE if the mulitple is anomolous. Hint: In Part Review (Workbook 1), we discussed Data Integrity and the challenges of encountering erroneous, outlier and irregular data. Your goal is to determine if any of the companies below should be eliminated from the potential comp' group because the data is anomolous. While it is not always posible to precisely define 'anomolous', if you cannot determine in this case which company is an anomoly you have made a mistake calculating the ratios. In Strategic Forecasting (Workbook 9), we removed an outlier and saw a significant improvement in the relationship between capacity utilization and profitability. In this exercise, you are doing something similar and 'scrubbing' the data to remove outliers that are anomalous. (4) In row 75, enter an IF function with an embedded AND function that results in TRUE when row 73 and row 74 ARE both TRUE and results in FALSE if either row is FALSE. 4, . Hint: Look at the TRUE and FALSE in row 75 and confirm you used the correct logic. Do your answers make sense? (5) In column P, calculate the average multiples for the Selected 'Comps' for rows 67 to 70. Hint: Use the AVERAGEIF function to make sure you only include the correct 'comps' you have selected in row 75. [HINT: USE FALSE IF YOU WANT TO REMOVE THE COMPANY FROM THE ANALYSIS!] 2022E Price/Sales 2022E P/E (Non-GAAP) 2022E EV/EBITDA 2022E Price/Book 2022E Price / Free Cash Flow Facebook (FB) 6.3 17.8 11.0 3.8 22.8 Accenture (ACN) 3.19613017) 21.4 27.4 17.3 7.6 21.7 Alphabet (GOOGL) 6.36831992 25.1 13.0 3.9 21.2 P&G Pinterest (PG) (PINS) 4.9051207 13.554352 24.3 42.4 22.4 18.1 35.7 7.0 10.0 23.4 60.9 Snapchat (SNAP) 14.575037 115.5 75.4 22.7 66.7 Trip Advisor Twitter Yelp (TRIP) ) (TWTR) (YELP) 2.435647 6.6740102 2.0591924 33.1 38.1 16.4 10.8 18.2 15.9 3.4 3.8 2.3 14.0 35.0 12.7 Selected 'Comps' Average Multiple 6.7 40.3 25.5 7.6 32.0 TRUE TRUE TRUE Strong Comparable? Not Anomolous? Selected 'Comps' (include in Relative Valuation?) TRUE TRUE TRUE TRUE FALSE FALSE FALSE TRUE TRUE FALSE FALSE FALSE TRUE TRUE TRUE TRUE TRUE TRUE| TRUE TRUE TRUE In Row 75, you selected companies that were strong comparables for Facebook. Why did you select these companies as 'comps'? a) These are all Internet companies and members of the same industry sector. b) These companies have a similar revenue model which relies on Internet advertising. c) These companies have a similar customer base, consumers. d) All of the above b

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions