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Pls solve dont reject this question ... a 100% correct question. ......... Question about For any company you want .. Put the information listed through

Pls solve dont reject this question ... a 100% correct question.

.........

Question about For any company you want .. Put the information listed through the stock exchange (The student is authorized to choose any company listed in the financial market.

Firm Valuation

Objective: To value your firm, based upon its existing management, and your expectations for the future.

Key Questions:

What type of cash flow (dividends, FCFE or FCFF) would you choose to discount for this firm?

What growth pattern would you pick for this firm? How long will high growth last?

What is your estimate of value of equity in this firm? How does this compare to the market value?

Framework for Analysis:

1. Cash Flow Estimation

What is this firm's accounting operating income? Would you adjust it for your valuation?

What is your firm's effective tax rate? What is its marginal tax rate? Which would you use in your valuation?

How much did your firm reinvest last year in internal investments, acquisitions, R&D and working capital?

2. Growth Pattern Choice

How fast have this company's earnings grown historically?

How fast do analysts expect this company's earnings to grow in the future?

What do the fundamentals suggest about earnings growth at this company?

(How much is being reinvested and at what rate of return?)

If there is anticipated high growth, what are the barriers to entry that will allow this high growth to continue? For how long?

3. Valuation

What is the value of the operating assets of the firm, based upon a discounted cash flow model?

Does the firm have cash and non-operating assets and what is their value?

Are there equity options outstanding (management options, convertible bonds) and how much are they worth?

What is the value of equity per share?

Getting Information for valuation

Most of the information that you need for valuation come from your current or past financial statements (available at Palestine stock exchange website). You will also need a beta (stock price and market index are available on Palestine stock exchange website).https://web.pex.ps

Good Luck

Note: only excel files are allowed

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