Question
I need help with the following question Attached for this discussion is theMS Excel Visa Discounted Cash Flow model.The DCF can be used to estimate
I need help with the following question
Attached for this discussion is theMS 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 CalculationsAssumptions
FCF Annual Growth
15%
Discount Rate
8.0%
Shares outstanding
2231
Debt
16630
Cash
11709
- Critically analyze the assumptions, potential errors, and modifications for the valuation of Visa stock price using the provided MS Excel Module 5 Visa DCF.
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