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for general motors - You are an analyst in the automobile industry and your boss asks you to do a valuation of a global publicly
for general motors
- You are an analyst in the automobile industry and your boss asks you to do a valuation of a global publicly traded automobile manufacturer. She wants you to come up with an enterprise valuation using both DCF and Comparable approaches and calculate your estimates on both a TEV (total enterprise) and per Share basis. She also provided some finer points. - DCF should be performed on a 10-year planning horizon - Use a discount rate of 8% - Build the DCF off of the company's current financial statements. If they do not use US\$ use the currency the financials are stated in. - You will need to make assumptions (future growth, cost structure, etc.) just document what they are. - The market currently trades at a 6.5 X EBITDA multiple for transactions and average P/E Ratio is about 6 - Do All of your work in Excel (post this in Canvas with your memo) Step by Step Solution
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