Hi, I was informed by Shakeel from order 83354 that my assignment has been missing depreciation, without it, all my numbers change and I need it for my DCF valuation. I followed the 10k of this...

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Hi, I was informed by Shakeel from order 83354 that my assignment has been missing depreciation, without it, all my numbers change and I need it for my DCF valuation. I followed the 10k of this company but he suggested using yahoo finance or wsj since I might've missed it. I would like to continue to have Shakeel to do my assignment if it is okay since he knows my predicament and I'm thankful that he spotted a mistake. I am pretty much starting this from the beginning, I'll write down everything that needs to be done.
(attached excel) is what we have done so far and the template of how things should be done/look, step 1 is missing the report and step 6 is new but overall starting from scratch.The company I am using is The Boston Beer Company Inc.

  1. Company profile. You should choose a company with a tractable record of at least five years. The company’s accounting and market information should be available for your study. Your report should include the description of its size and lines of business, a brief history of the company, its position in the industry, and some major events in recent years.
  2. Construct an Excel file displaying the past three years of income statement, balance sheet, and the statement of cash flows. Then organize and recalculate the numbers that can be calculated. (Do not use the statement of cash flows from 10-k. Generate the cash flow statement using the indirect method we learned in class)
  3. Add another worksheet for historical analysis & forecast assumptions. You will calculate revenue growth, % or revenue, efficiency measures (Inventory days, etc.) for some income statement and balance sheet items. Then you will make assumptions for these ratios. Below this table, use texts (words) to describe your historical analysis results and explain why you make such assumptions for the next five years of these ratios.
  4. Based on your forecast assumptions, project the next five years of the income statement and balance sheet. Finally, project the statement of cash flow.
  5. add another worksheet for Discounted Cash Flow (DCF) valuation. Similar to our lecture 8, you will calculate free cash flow to the firm for the next five years and the terminal value of the firm at the end of the fifth year. Then you will discount these cash flows to present and find out the business enterprise value as well as the equity value per share. Finally, based on your valuation, make investment advice for this stock.
    • To discount the cash flows, the discount rate will be the weighted average cost of capital. For simplicity, you don't have to estimate the WACC yourself. You can use the industry average cost of capital from thisdatabase(Links to an external site.). (http://people.stern.nyu.edu/adamodar/New_Home_Page/datafile/wacc.htm)
    • You need to also explain the steps and the assumptions so someone out of our class can understand. Please write on the DCF worksheet below the calculations. Don't create another worksheet.
  6. add another worksheet to provide an overview of the project. You need to explain the overall process to value the company and refer to the relevant worksheets.
Answered 7 days AfterMay 13, 2021

Solution

Shakeel answered on May 18 2021
25 Votes

Financial Analysis.
The Boston Beer Company Inc.
Income Statement for the Years
2018 through 2020
(FYE February...

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