You are required to analyse Accent Group Limited (AX1.AX) and prepare an investment recommendation report. The report provides an assessment of the company’s current position and future prospects,...

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You are required to analyse Accent Group Limited (AX1.AX) and prepare an investment recommendation report. The report provides an assessment of the company’s current position and future prospects, incorporating the use of various valuation techniques to arrive at estimates of the intrinsic value of the company’s shares.
Estimate the intrinsic value of the company’s shares using the Free Cash Flow to Equity (FCFE) model • you must use a 3 stage FCFE model to calculate the intrinsic value of the stock • source the components for FCFE from the company’s financial statements using Eikon • calculate the FCFE per share over the past six years using the formula below: FCFE = Net Income + Depreciation Expense - Capital Expenditures - Change in Working Capital - Principal Debt Repayments + New Debt Issues • estimate the growth of FCFE for Stage 2 using your macro and microanalysis • estimate the terminal (Stage 3) growth rate using a proxy that represents the longterm growth rate and calculate the terminal value • calculate the present value of each future year’s FCFE to calculate present value, then add them to calculate the intrinsic value of the company
Answered 1 days AfterMay 13, 2021BAFI1042

Solution

Himanshu answered on May 15 2021
27 Votes
Accent Group Limited
AUD 2.62
Accent Group Limited is a retailer and distributor of performance and leisure footwear established in Australia. The company runs 479 locations under ten retail...
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