concern that VC faces is the fact that its product polypropylene is considered as a commodity‚ which means that they cannot compete as a differentiated product. As such‚ to remain competitive and gain market share‚ they needed to maintain competitive prices while increasing profit by lowering cost. Because of the current situation of both of its plants‚ VC incurs high costs of production because of its dependence on labor. Given these factors‚ Merseyside’s plant manager and her controller‚ thought that
Premium Net present value Discounted cash flow Internal rate of return
...........3 Objectives ..............................................................................3 Overview................................................................................4 Alternatives – How to Address Seagate’s Low Stock Price ..5 Do Nothing.............................................................................6 Unload all VERITAS Stake ...................................................7 Sell to Other Investors .................................................
Premium Leveraged buyout Cash flow Discounted cash flow
EPPM3644 KEWANGAN KORPORAT DAN PENSTRUKTURAN SET: 3 REPORT OF CASE STUDY: CASE 19 WORLDWIDE PAPER COMPANY PROFESSOR: DR. LIZA MARWATI BINTI MOHD YUSOFF GROUP MEMBERS: LOH CHAI LING A140178 GOH HOOI SAN A139708 KERK (KEH) YIH JEN A139574 SEMESTER 2‚ 2013/2014 INTRODUCTION In December 2006‚ Bob Prescott‚ the controller for the Blue Ridge Mill‚ was considering the addition of a new on-site longwood woodyard. Two primary benefits for this new addition include eliminating
Premium Net present value Cash flow Discounted cash flow
Valuation models Discounted cash flow models: Dividend discount Free cash flow to the firm Residual income Multiples-based valuation: Price-earnings Value-EBITDA Value-EBIT Value-Sales Price-Book value Equity valuation In conjunction with the valuation of Coles Group‚ contained in “Excel03 Equity valuation” Real options valuation Equity markets price shares above the present value of expected future cash flows‚ due to the presence of embedded options not captured by DCF analysis Real
Premium Discounted cash flow Weighted average cost of capital Generally Accepted Accounting Principles
APRIL 2010 ST R I C T L Y P R I VAT E AN D C O N F I DEN T I AL INTRODUCTION TO VALUATION Presented by Tristan Fitzgerald Overview of the session Introduction Discounted cash flow (“DCF”) Trading multiples I N T R O DU C T I O N T O VAL U AT I O N Transaction multiples 1 What does the term “value” mean?1 The Oxford Dictionary definition “the material or monetary worth of a thing; the amount at which it may be estimated in terms of some medium of exchange
Premium Discounted cash flow Cash flow Free cash flow
...................................... 14 5. Price to accept ...................................................................................... 15 6. Recommendation .................................................................................. 17 Executive Summary: Timken Company requires a report on its consideration to acquire Torrington from Ingersoll-Rand. This reports provides the needed information on Torrington’s worth‚ price at which Torrington could be acquired and the acquisition
Premium Discounted cash flow Net present value Cash flow
December 5‚ 2014 Ford Motor Co. Analysis| Stern Value Management Interview Introduction Ford Motor Co. manufactures and sells cars and is the sixth-largest car maker Stock Price in $ 20 1000000000 800000000 600000000 400000000 200000000 0 15 10 5 FINANCIAL HIGHLIGHTS Ticker F Date‚ as of 12/03/2014 Stock Price $16.01 P/E 10.47x Market Cap (mm) $61‚617 Dividend Yield Ford Motor Co. (NYSE:F) - Volume Ford Motor Co. (NYSE:F) - Share Pricing Ford Motor Co. (NYSE:F) - Share Pricing (Announced/Completed
Premium Ford Motor Company Capital structure Discounted cash flow
Arundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights‚ the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out the value
Premium Option Discounted cash flow
Share Valuation Models 1. Dividend Valuation Models Discounted Dividend Model (DDM) Constant Growth DDM Differential Growth DDM 2. Earning-based Models Earnings Capitalisation without growth Earnings Capitalisation with growth Price-Earning Multiple Model 3. Free Cash Flow Models Discounted Free Cash Flow to Equity (FCFE) model Discounted Free Cash Flow to the Firm (FCFF) model 4. Book Valuation (Net Asset Value) Model Discounted Dividend Model The dividend discount model (DDM)
Premium Balance sheet Net present value Stock market
risks? 2. What price should Radio One offer on a discounted cash flow analysis assuming all equity financing? Show and explain cash flows items needed to be estimated to get relevant cash flows in 2001 – 2004. Estimate relevant cost of capital to calculate PV of relevant cash flows assuming acquisition is all equity financed. Estimate terminal value of potential acquisitions after forecast period ends in 2004. What price should Radio One offer on a discounted cash flow analysis using
Premium Cash flow Discounted cash flow Mathematics