Question
You are an Ford analyst (in the automobile industry) and your boss asks you to do a valuation of a global publicly traded automobile manufacturer.
You are an Ford analyst (in the automobile industry) and your boss asks you to do a valuation of a global publicly traded automobile manufacturer. She wants you to come up with an enterprise valuation using both DCF and Comparable approaches and calculate your estimates on both a TEV (total enterprise) and per Share basis. She also provided some finer points. DCF should be performed on a 10-year planning horizon Use a discount rate of 8% Build the DCF off of the companys current financial statements. If they do not use US$ use the currency the financials are stated in. You will need to make assumptions (future growth, cost structure, etc,) just document what they are. The market currently trades at a 6.5 X EBITDA multiple for transactions and average P/E Ratio is about 6 Do All of your work in Excel
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