Your corporate valuation report should analyze your chosen corporation from the provided list and estimate its overall value.
Throughout this assignment, you will use a provided Excel template. To complete this assignment, you will submit both a written paper and the completed Excel
template with the â€œFinancial History,â€ â€œCapital Structure,â€ and â€œValuationâ€ tabs filled in.
Specifically, the following critical elements must be addressed:
Overview: This section of your report will be devoted to providing a thorough overview of the background of the corporation you selected and setting
the foundation for your later discussion of the challenges financial managers face. Specifically, you must address the following:
A. Describe the market to which your corporation belongs, identifying the products or services your corporation sells and the share of the market it
B. Describe the customer base of your corporation and the top competitors for this customer base. Be sure to consider what motivates the
customers and the challenges the organization faces in retaining the customer base.
C. Describe the key inputs (and sources of those inputs) used to create the products or services, as well as the key resources for corporate
operation (such as staff, facilities, technologies, etc.) and the extent to which attaining all these resources presents a challenge to the particular
D. Analyze key market trends and issues within the industry for potential risks to the organization.
II. Financial History: The next section of your report should focus on the financial history and capital structure of your organization.
A. Quantitatively analyze three yearsâ€™ worth of the corporationâ€™s finances using the provided Excel template. You will submit this template along
with your report, and may embed pieces of the Excel template into your report to show key financial highlights in the following critical element.
B. Summarize the financial highlights you determined from the analysis in the Excel template, explaining the significance of the key ratios for the
overall financial health of the organization.
III. Capital Structure: In the third section of your report, discuss the capital structure of the corporation.
A. Outline the most recent yearâ€™s debt, equity, and total capital using the provided template to show the overall capital structure of the
B. Articulate the corporationâ€™s dividend policy and what impact it has on the investors.
C. Analyze the relationship between capital structure, cost of capital, and risk, using examples from your chosen organization.
D. Explain how the relationship between capital structure, cost of capital, and risk can help inform decision making and maximize corporate value.
IV. Valuation: The final section of your report will focus on calculating current value, outlining assumptions, and estimating the future value of the
corporation through forecasting the cash flows. Specifically, respond to the following:
A. Calculate the current market value of equity for your corporation, using the three-year history and provided Excel template, and explain what it
means for the corporation.
B. Outline any assumptions you have made in calculating the current value and estimating the future value of the corporation, explaining why you
made them and why they are important. (Hint: Assumptions can include growth rates, margins, trends, etc.)
C. Estimate the current value of your corporation by forecasting the cash flows over five years using the provided Excel template, and explain your
findings. Calculate EVA, NPV, IRR and MIRR.
Your corporate valuation report should be 6â€“9 pages in length, double spaced, with 12-point Times New Roman font, one-inch
margins, and APA formatting. Along with your corporate valuation report, you will submit your complete Excel template as a separate file. You may use pieces of
your Excel template as images within your report, but you must still submit the completed Excel template with your final report submission.