See attached Docs1st doc = what you did from assignment in module 22nd doc = is that needs to be done for this HW.
I attached the 1st document to review it and use it as info to do this HW. As far as peer, you can use Burger Kings, KFC and Wendy's for Multiples Valuation.
Please review it carefully.
FS to FCF Template Company Name: McDonald Corp (MCD)Solution Legend Value given in problem Formula/Calculation/Analysis required Qualitative analysis or Short answer required Financial Data 20172018201920202021 Year 1Year 2Year 3Year 4Year 5 Assets Cash & Cash Equivalents$2,464$866$899$3,449$4,709 Short-term Investments$0$0$0$0$0 Receivables$1,976$2,442$2,224$2,110$1,872 Inventories$59$51$50$51$56 Prepaid Expenses$828$695$385$633$511 Total Current Assets$5,327$4,053$3,558$6,243$7,149 Net Property, Plant & Equipment$22,448$22,843$24,160$24,958$24,721 Total Assets$27,776$26,896$27,718$31,201$31,869 Liabilities Accounts payable$925$1,208$988$741$1,007 Current maturities of long-term debt$0$0$59$2,244$0 Income taxes payable$266$228$332$741$361 Total current liabilities$1,191$1,436$1,379$3,726$1,368 Long-term debt$29,536$31,075$34,118$35,197$35,623 Total Liabilities$30,727$32,512$35,497$38,923$36,990 Total stockholders’ equity (deficit) ($3,268)($6,258)($8,210)($7,825)($4,601) Total Liabilities & Shareholder's Equity$27,459$26,253$27,287$31,098$32,389 Income StatementYear 1Year 2Year 3Year 4Year 5 Revenue Total revenues$22,820$21,025$21,364$19,208$23,223 Expenses Cost of Goods Sold$9,673$8,521$8,460$7,887$8,871 General, administrative and other$2,231$2,200$1,967$2,245$2,378 Depreciation and amortization$1,363$1,482$1,868$1,751$1,618 Total expenses$13,268$12,203$12,295$11,884$12,867 Operating income$9,553$8,823$9,070$7,324$10,356 Interest expense$921$981$1,122$1,218$1,186 Income before income taxes$8,631$7,841$7,948$6,106$9,170 Income tax benefit (expense)$3,381$1,892($1,993)($1,410)($1,583) Net income$12,013$9,733$5,955$4,696$7,588 Dividends Paid$3,089$3,256$3,582$3,753$3,919 Non-distributed Income$8,923$6,477$2,373$943$3,669 Find Changes in NWC Year 1Year 2Year 3Year 4Year 5 Current Assets, other than Cash and Marketable Securities$2,863$3,187$2,659$2,794$2,439 Current Liabilities, excluding Debt$1,191$1,436$1,320$1,482$1,368 Net Working Capital (CA-CL)$1,673$1,751$1,340$1,312$1,072 Change in NWC (NWC Investment)$78($412)($28)($240) Find CapEx Year 1Year 2Year 3Year 4Year 5 Net Property, Plant & Equipment$22,448$22,843$24,160$24,958$24,721 Depreciation and amortization$1,363$1,482$1,868$1,751$1,618 Capex$513$1,703$682($371) You can read more using the following linkHoward Keen, Clearing Up Confusion over calculation of FCF. Estimate FCF Tax Rate35% DL: If you have difficulty estimating company's tax rate you may assume statutory tax rate of 35% before 2018 and 21% thereafter Year Year 1Year 2Year 3Year 4Year 5 EBIT $8,823$9,070$7,324$10,356 EBIT(1-T) = NOPAT$5,735$7,165$5,786$8,181 Plus: Depreciation Expense$1,482$1,868$1,751$1,618 Less: CAPEX$513$1,703$682($371) Less: Working Capital Investment$78($412)($28)($240) Firm Free Cash Flow$6,625$7,741$6,884$10,410 Based on historical financial data, find FCF for the company of your choice. 1. In week 1 you were asked to choose a publicly traded company and submit its name for instructor's approval. Assuming 2. Download annual financial data for the last 5 years from Edgar Website (forms 10-K). Attention: if your company became public less than 5 years ago, you will also have to download data from its IPO filing prospectus (form 424B4). Template below is approximate, you may modify it (change, delete, or add rows), to suit your company 3. Using approach similar to the one described in this module's Excel file you will have to calculate the FCF for the company of your choice If you have difficulty estimating company's tax rate you may assume statutory tax rate of 35% for years before 2018. For submission, Excel file is enough http://www.jgbm.org/page/1%20Howard%20Keen.pdf Multiples Valuation Template (in millions)(in millions)(in millions)(in millions) MY COMPANY IN MODULE 1: MCD (MCDONALD CORP) Solution Legend Downloaded data Formula/Calculation/Analysis required Peer Companies:Peer 1Peer 2Peer 3Your Company (MCD) Ticker PERIOD ENDING From Income Statement and Balance Sheet Balance Sheet Insert Relevant Items here Income Statement Insert Relevant Items here Calculated Multiples EV/EBITDA Multiple P/E Multiple Market to Book Multiple Price/Revenue Multiple Your Company Valuation (MCD) Your Company (MCD) Enterprise Value based on EV/EBITDA multiple Plus: Your Company Cash$0 Less: Your Company Interest-bearing debt$0 Total Equity value based on EBITDA Shares Outstanding (millions)- Equity value per share Equity value per share based on P/E multiple Total Equity value based on P/E multiple Plus: Your Company Interest-bearing debt$0 Less: Your Company Cash and equivalents$0 Enterprise value based on P/E multiple Equity value per share based on MTB Ratio Total Equity value based on MTB ratio Plus: Your Company Interest-bearing debt$0 Less: Your Company Cash and equivalents$0 Enterprise value based on MTB ratio Equity value per share based on P/Revenue ratio Total Equity value based on P/Revenue ratio Plus: Your Company Interest-bearing debt$0 Less: Your Company Cash and equivalents$0 Enterprise value based on P/Revenue ratio This exam requires you, among other things, to estimate the stock price for Virgin America (Ticker: VA), and provide the analysis as requested. You will need to use “Sources of Financial Data” listed in Course Content to obtain the necessary financial info/statements for Virgin America Inc., to identify its peer companies and to obtain pricing and financial information for them. A. Choose several peer companies for Virgin America Inc. and justify your choice. Choose several valuation multiples and using comparable ratios of peer companies (as we did in Project 2 and discussed in Conferences) and Virgin America Inc. financial information from prospectus, estimate the company’s equity value on April 3, 2016. It is required for this question to list your major assumptions and properly reference sources of information that you used in your calculations. Using the same company as in Module 1 assignment and its peers, find multiple ratios of peer companies and then estimate your company’s equity value and enterprise value. This Assignment uses the same company as in Modules 2 and 3 1. Choose peer companies for your company and download their relevant financial data. You don't have to download entire financial statements — only the items used in multiples valuation 2. Using approach similar to the one described in this module's Excel file, find valuation multiples (ratios) of peer companies. 3. Estimate your company's equity value and enterprise value I suggest starting from the "Multiples Valuation Template" in Module 4 Excel file and adjust it accordingly