topic: Dhaka Electric Supply Company Ltd.

https://en.m.wikipedia.org/wiki/Dhaka_Electric_Supply_Company_Limited#:~:text=Dhaka%20Electric%20Supply%20Company%20Limited%2C%20commonly%20known%20as%20DESCO%2C%20is,as%20a%20Public%20Limited%20Company.

Find intrinsic value for the assigned company stock using the following methods and suggest whether the stock is undervalued or overvalued after comparing with current market price. 1. Dividend Discount Model (min 3 Stage Growth Model) 2. Free Cash Flow to the Firm Model (FCFF or FCF Model) (min 3 Stage growth model) 3. Relative Valuation (using benchmark ratios : P/ E ratio, P/BV ratio, P/CF ratio, P/S ratio, EV/EBITDA ratio) Report Format 1. Write a 1-page company overview with product and industry information 2. For Dividend discount model and FCF model, show calculation of cost of equity and WACC respectively. 3. For Relative valuation, use around 5 peer companies to calculate the sector average of the benchmark ratio. 4. Summarize the valuation results and give your recommendation after comparison with market price. Industry Electricity Distribution Founded (November 3, 1996; 23 years ago) in Dhaka, Bangladesh Headquarters Nikunja-2, Dhaka, Bangladesh Area served Dhaka City Corporation Revenue 2013: US$ 311.1279 million [1] Operating income 2014: US$ 14.508 million[1] Net income 2013: US$ 10.349 million[1] Total assets 2013: US$ 435.479 million[1] Total equity 2013: US$ 138.471 million[1] Number of employees 1573 (2013)[2] Parent Bangladesh Ministry of Power, Energy and Mineral Resources[3] Website desco.org.bd Find intrinsic value for the assigned company stock using the following methods and suggest whether the stock is undervalued or overvalued after comparing with current market price. 1. Dividend Discount Model (min 3 Stage Growth Model) 2. Free Cash Flow to the Firm Model (FCFF or FCF Model) (min 3 Stage growth model) 3. Relative Valuation (using benchmark ratios : P/ E ratio, P/BV ratio, P/CF ratio, P/S ratio, EV/EBITDA ratio) Report Format 1. Write a 1-page company overview with product and industry information 2. For Dividend discount model and FCF model, show calculation of cost of equity and WACC respectively. 3. For Relative valuation, use around 5 peer companies to calculate the sector average of the benchmark ratio. 4. Summarize the valuation results and give your recommendation after comparison with market price. Industry Electricity Distribution Founded (November 3, 1996; 23 years ago) in Dhaka, Bangladesh Headquarters Nikunja-2, Dhaka, Bangladesh Area served Dhaka City Corporation Revenue 2013: US$ 311.1279 million [1] Operating income 2014: US$ 14.508 million[1] Net income 2013: US$ 10.349 million[1] Total assets 2013: US$ 435.479 million[1] Total equity 2013: US$ 138.471 million[1] Number of employees 1573 (2013)[2] Parent Bangladesh Ministry of Power, Energy and Mineral Resources[3] Website desco.org.bd