Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The DCF (discounted cash flow method) is an Income Approach to valuation. It estimates the present value of future cash flows that an asset will

image text in transcribed
image text in transcribed
image text in transcribed
The DCF (discounted cash flow method) is an Income Approach to valuation. It estimates the present value of future cash flows that an asset will generate over its life. These cash flows are discounted at a rate appropriate for the risk of the asset, the WACC of the target company. The 5 Public Company Comps you will find found are used to determine the Revenue and EBITDA multiples. There are singular templates on canvas for review of any of the components of this DCF model. For this assignment, you will be working individually, on your Target Company (or BMC) financials. You will be required to construct comprehensive financials for a Discounted Cash Flows analysis, with all accompanying data. This assignment is 100% excel based, and a former student example (not a template) is provided. You are required to create your own file for submission. student example (not a template) is provided. You are required to create your own file for submission. You will be graded on the following: 1. Historical financial data (Baseline year, 3 years). 2. Projected financial data (Future years, 3 years. Include capital spending, depreciation and amortization, and change in working capital). 3. Cash and debt as of the valuation date (current year), if applicable. 4. Comparable public companies (5), Revenue and EBITDA multiples, with statistical summary and chosen indication. 5. Capital structure data; How is the company financed (Debt \% / Equity \%). 6. Beta and WACC analysis. 7. Determination of Enterprise Value (DCF). EdTech example.xlsx The DCF (discounted cash flow method) is an Income Approach to valuation. It estimates the present value of future cash flows that an asset will generate over its life. These cash flows are discounted at a rate appropriate for the risk of the asset, the WACC of the target company. The 5 Public Company Comps you will find found are used to determine the Revenue and EBITDA multiples. There are singular templates on canvas for review of any of the components of this DCF model. For this assignment, you will be working individually, on your Target Company (or BMC) financials. You will be required to construct comprehensive financials for a Discounted Cash Flows analysis, with all accompanying data. This assignment is 100% excel based, and a former student example (not a template) is provided. You are required to create your own file for submission. student example (not a template) is provided. You are required to create your own file for submission. You will be graded on the following: 1. Historical financial data (Baseline year, 3 years). 2. Projected financial data (Future years, 3 years. Include capital spending, depreciation and amortization, and change in working capital). 3. Cash and debt as of the valuation date (current year), if applicable. 4. Comparable public companies (5), Revenue and EBITDA multiples, with statistical summary and chosen indication. 5. Capital structure data; How is the company financed (Debt \% / Equity \%). 6. Beta and WACC analysis. 7. Determination of Enterprise Value (DCF). EdTech example.xlsx

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

F For Quantitative Finance

Authors: Johan Astborg

1st Edition

1782164626, 978-1782164623

More Books

Students also viewed these Finance questions

Question

How flying airoplane?

Answered: 1 week ago