Project Instructions
Please carefully follow the project instructions. It is important and required that you review the documents below in the order they are numbered.
- Review of Sensitivity Analysis
Note: Dates in your template might be different. Please make sure to use the correct dates in your analysis
“Hello everyone.
In this video, I will show you how to construct the data table. Here we have the weighted average cost of capital. Here we have the
terminal growth rate (constant growth rate) In the last value for weighted average
cost of capital, please provide the
weighted average cost of capital for
your own company. Now the first thing we need to do is we need to link this table to the DCF output
which is here. This is a sample
spreadsheet. Next we will choose this whole area and then
we will go to data. And What if analysis
data table. It is asking us row input
cell. In our row, we have the terminal
growth rate which is here. In our column, we have the WACC,
which is here. Then the table
is generated. We need to make sure that WACC and terminal
growth rate combination produces the
correct answer. This is your WACC here for this sample
spreadsheet. Here is the growth rate and their combination
generates this stock price which matches the stock price. This confirms
that data table is correctly set up. Thank you so much for
watching this video.” (i couldnt upload the video here is the transcript)
Please submit the following by the due date. It will suffice if one person from a given team makes the submissions. Late submissions will earn zero points.
- Your REPORT (based on the required template)
- Valuation Template SPREADSHEET (must contain the raw accounting data from Capital IQ and all
your calculations) - Presentation Slides
- Video Presentation
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