This project showcases the Discounted Cash Flow (DCF) Model, a widely used valuation technique to estimate a company’s intrinsic value. The model analyzes historical financials, forecasts future cash flows, and discounts them to present value to determine enterprise and equity value.
- Financial forecasting based on historical data and fundamental assumptions.
- Free Cash Flow (FCF) calculation to determine intrinsic value.
- Discounting cash flows to present value.
- Fair value per share estimation.
- Fair Value per Share:
$60.15 - Market Price (as of Dec 30, 2019):
$73.14 - Growth Forecast:
-17.76% - 📉 Recommendation: 🚨 SELL
✅ Stock Overvaluation: The market price exceeds the fair value, indicating overvaluation based on the DCF model.
✅ Negative Growth Forecast: The -17.76% growth suggests a potential decline in stock value, reinforcing a sell recommendation.
✅ Enterprise & Equity Value:
- Enterprise Value (EV):
$142,248 million - Equity Value:
$39,640 million - Shares Outstanding:
659 million
This valuation relies on assumptions about:
- Revenue growth, profit margins, and cost structure.
- Capital expenditures & discount rates for cash flow projections.
- Macroeconomic conditions that may impact future performance.
External market conditions should be considered alongside this valuation.
- 📑 Excel (financial modeling & forecasting)
🚀 This project offers a structured approach to corporate valuation using the DCF methodology, integrating key assumptions and data-driven insights.