Replies to post #25588 on FOREX TRADERS

[daiello]

NO NO NO NO QUIZES. NO MORE WORK LOL.

This is what I'm doing...

Case #4: Valuation of Nike or Adidas

In case 4 your task is to value Nike or Adidas using a relative valuation approach and a DCF approach. Use your financial projection from Case 3 to determine your estimate of the appropriate values for the following. Find each value using a weighted average cost of capital of 10%. Next find the values assuming WACC is 12% or 8%.

For the firm you selected find:

1. The enterprise value
2. The total equity value (market capitalization)
3. The implied share price

You must find each of the above values using both a comparable and a discounted cash flow approach.

Perform some sensitivity analysis to see how changes in the key assumptions impact the above values.

Which assumptions are most critical to the analysis? Create data tables to illustrate the impact.

Summarize your conclusions.