Financial Statements (FS)
Based on Financial Statements (FS) and data Delivered on the excel file referred as
“FinalProject_FSdata+ assumptions” received, you are required to run Firm and Equity valuation
based on,
➢ Discounted Cash Flow method_ topic 11 from materials received,
➢ Multiples or Comparables method_topic 10 from materials received.
• Additional info on Discounted Cash Flow method,
In order to get Equity value from Discounted Cash Flow method, you should use the indirect
option. Regarding NPV calculation, just take into account that year 2018 is part of the finite
horizon and, therefore, first estimated cash-flow to be included on NPV calculations. Moreover
the “g” value, to be used on the Terminal Value calculation, has been estimated on 1%.
FINAL PROJECT 2021- 2022
• Additional info on Multiple or Comparable method,
Just get Company Value applying EBITDAR and PSR multiples assuming that,
- multiple value from “Peer Group” will be 5.5 in regarding EBITDA variable
which will be applied over EBITDA average of years 2019/2020/2021 on our
company,
- multiple value from “Peer Group” will be 0.8 in regarding PSR (Price to Sales
Ratio) variable which will be applied over average sales average of years
2019/2020/2021 on our company.
Draw up a Conclusions chapter of Part II, after running all calculations from both methodologies
as follow,
Once you have run all calculations from both methods, please give your opinion about the
consistency of Value Range got and explain more relevant variables involved on the transaction
and their impact on the final outcome. Finally, complete your work with a Sensitivity Analysis
based on changes in WACC and “g” parameters filling a table similar to this one, applied to
answer the question “what happens with Company Value if”;
Sensitivity Analysis table (just as example),
Variances range_(WACC vs “g”) -1% 0% 2% 3%
11,85%
12,85%
14,85%
15,85%