Based on the results from these two methods, you must write the conclusions and
estimate value of the business as of January 1st, 2024. In your report, include the
following aspects:
– Consider how the competitive positioning, growth prospects, and strategic
initiatives may impact the future cashflows and valuation multiples of the
company under analysis.
– Analyse the trade-offs between debt and equity financing with respect to your
assigned company, and explore its capital structure optimisation.
– Suggest how the real-world constraints could be incorporated into your analysis
(e.g., regulatory constraints, taxation issues, currency fluctuations, geopolitical
risks, etc.).
– Utilise economic theory to support your analysis and interpretation of the
financial data as well as your valuation results.
Your valuation report should be structured in the following way:
1. Description of the methodology used
2. Market Multiples (Public Comparables analysis)
3. DCF (Forecasted cashflows, WACC calculation)
4. Conclusions
5. Annexes/appendix (support calculations)
Note that you will need to take decisions when calculating some of the elements of your
analysis. Remember to always state and justify your decisions/assumptions.