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Please provide me with Ford Motor Company DCF analysis and assumptions write - ups according to the Excel data image provided above. Sales growth assumptions
Please provide me with Ford Motor Company DCF analysis and assumptions writeups according to the Excel data image provided above. Sales growth assumptions were from year and increased from What reasons the sales growth has been estimated for Ford Motor company? The longterm growth rate is The price per share is $ WACC is Why the stock price per share is undervalued. for Ford Motor Company? An example of writeups I have provided below. GoPro ended their calendar year resulting in $ million Gross Income, primarily
comprised of their Unit driven sales $ million and their subscription revenue $
million partially offset by their Cost of Goods Sold, totaling $ million. With a relatively new
sector of GoPro, in the effort to focus on subscription growth, we have set forth assumptions,
similar to what is commonly seen across other subscription focused companies, a hyper growth
stage in the next three years. In comparison with although a lower revenue year as a
result of Covid GoPro has managed to grow their subscription base by vs PY with a
total of million subscribers. As a result, weve proposed a growth rate in and a
growth rate in with the growth rate slowly diminishing YOY, arriving at a CAGR
by the end of totaling million subscribers. We decided on this number based on
Managements target of a growth rate for and fading that down in subsequent years.
According to the management team at GoPro, their outlook includes not only increasing
their camera products, but a fairly aggressive approach to expand their new cloud capabilities
corresponding with a new subscriptionbased application. Their current revenue projections
reported during their Q and Full Year Earnings Call on February rd assume a
Gross Margin in where weve forecasted and in In order to achieve
these growth expectations, weve assumed that the revenue growth attributable to their units
primarily camera devises are anticipated to remain relatively in line with inflation
expectations With regard to their SGA and R&D expenses, historically GoPro has reflected
SGA to be approximately of their revenue outcome with R&D at approximately of
total revenue both of which are averages over the last years Given the growth weve
applied to revenue, we believe keeping these metrics static, with respect to revenue growth,
was the best approach, as the costs associated to adding new personal and
developingmaintaining their cloud services would result in a similar growth in response to their
revenue.
In order to arrive at their annual cash flow, weve assumed a tax rate based on analyst
projections Additionally, in order to arrive at the discounted cash flows, weve also assumed
depreciation and interest to be relatively flat, however the cost of these areas alone, have not
resulted in a significant increase as well, thus these implications are fairly immaterial. Overall,
the Terminal Value is suggested to be $ million based on our CF of $ million, a
WAAC of and a longterm growth of Based on the total shares outstanding of
total value of GoPro is suggested to be $ million, with a share price of $ PPS As of
February th GoPros stock price is approximately $ Based on our DCF analysis, this
stock price is slightly lower than where we envision GoPro heading, primarily driven by their
proposed revenue growth.
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