The A2 Milk Company

develop a company valuation model using the discounted cashflow valuation and other methods for a company publicly listed on the New Zealands Exchange (NZX).

Financial statements that are forecasted 5 years into the future based on the 5 years worth of past information provided. (Balance Sheet, Income Statement, Cashflow Statement)

oAssumptions made in forecasting the future should be identified and justified with reference to past financial information, other annual report information and any other information sources that the student deems important

oAll assumptions made by the student should be reasonable and justified

oThe model should also contain opportunities for the user to change key inputs to assess the impact on the firms value

The model should accurately compute the weighted average cost of capital and beta with the option of allowing users to alter the period and frequency of the beta used in the calculation of the WACC (i.e. one year daily data versus five years monthly)

Accurately employ the Free Cashflows formula to compute the cashflows for the next 5 years based on the forecasted financial statements information, and then use the Discounted Cashflow and/or other methodologies to compute the value of the company and hence stock price.

Model should contain a summary page that brings together key inputs and key outputs.

The valuation model should conform to the rules of good financial model design.