For the Boeing Company:

Discounted Cashflow Valuation: (2-3 pages)

Value the stock in each company using a discounted cash flow model (You have the discretion to choose the DCF model that you think is most appropriate for that company: FCFF, FCFE, DDM)

• Estimate how sensitive your value estimates are to changes in your assumptions.
• What are the key drivers of value for your company?
  • Identify the key assumptions that support your estimates of each variable in the discounted cash flow model. Core competencies (technology, intellectual property, distribution channels, branding, ect), competitive position in the industry (size of market, percentage of market share, growth in market share, barriers to entry, .).
  • Key inputs to DCF models are
    • near-term growth rate assumptions (year to year)
    • estimate length of current rate of growth
    • long-term growth estimate
    • estimate of required return (CAPM)
      • risk free rate
      • beta
      • market risk premium
    • cash flow estimates