As the final project for our course, you are expected to evaluate P&G’s performance and determine the value of the company. Please go to SEC website and download most recent financial statements as the “template” and build your valuation analysis based on the template.
You may search and use more relevant information of the company in addition to the financial statement data on SEC’s website.
You are expected to apply what you’ve learned in this course to the best of your ability. Essential components include pro forma analysis (cash flow estimations), risk analysis, discounted cash flow and relative valuation methods, etc.
You are required to write a formal report of your valuation analysis. The report should not exceed ten pages, double spaced, with font size 12 (excluding tables and figures). You may include tables and figures in the text or as an appendix. The quality of writing is paramount. Please make sure the paper reads cohesively and follows a consistent format.
Please refer to the suggested content listed below. You may modify the structure of your paper as long as essential components are included.
1. Introduction: start with a brief firm introduction and address major strengths and challenges facing the company.
2. Recent Financial Performance: conduct ratio analyses and identify trends.
3. Economy, Industry, and Firm Analysis: discuss the outlook for the economy, industry, and the company. How will the economy affect your company?
4. Pro Forma Analysis (assumption development for the list of inputs, pro forma analysis, etc.): develop assumptions and carry out pro forma for the next five years.
5. Firm valuation: apply various methods discussed in the class to determine the value of the firm.
6. Risk Analysis (scenario and sensitivity analyses): use break-even sensitivety analysis to identify top 5 value drivers from the list of inputs, and develop best, worst, and expected scenarios (based on the top 5 value drivers) and analyze how firm value is impacted by the drivers and different scenarios.
7. Conclusion: provide your recommandtion for the final valuation of the firm.
Each group should submit only one copy of the finished written report and the supporting excel file.
Please make sure to review my instruction video under this module for additional directions.