Cement Industry …………………………………………………….. 4-5 3. The Yamama Saudi Cement Company…………….…………………………... 6 4. Company Valuation ……………………………………………………………... 7-11 4.1. The Free Cash Flow Model (FCF) ………………………………………... 7 4.2. The Dividend Discount Model (DDM) …………………………………… 8 4.3. The Discounted Cash Flow Model (DCF) ………………………………... 8-9 4.4. Key Indicators ……………………………………………………………... 9-10 4.5. Peer Comparison …………………………………………………………... 10-11 5. Conclusion ………………………………………………………………………
Premium Discounted cash flow Financial ratio Free cash flow
significantly larger market share than those same adversaries. But with the new increase in demand‚ a lack of borrowing power‚ a very “loose” accounts payable collection system and a growing inventory pool‚ Cape Chemical ran into cash flow issues. Since they are running into cash flow issues now‚ even with double-digit growth rates year over year‚ we can only assume that the company will have a even larger financial burden when those same normal‚ growth rates slow. I have outlined three scenarios‚ all of which
Premium Free cash flow Cash flow Money
Starbucks Corporation My Case 7 Spring 2007 Discount Rates in Valuation Discount rates play a key role in the valuation of discounted cash flows. Three rates are generally used to calculate the present value of future cash flows: the cost of equity (Ke)‚ the weighted-average cost of capital (WACC)‚ and the unlevered cost of capital (Ku). The Cost of Common Equity The cost of common equity is the building block for all of the other discount rates. The cost of common equity is based on
Premium Discounted cash flow Weighted average cost of capital Cash flow
Earnings per share 2.1.8 Return on investment 2.2 Balance Sheet 2.2.1 Current/ quick ratio 2.2.2 Working capital cycle 2.2.3 Gearing 2.2.4 Asset turnover 2.3 Statement of Changes in Equity 2.4 Cash flow Statement 2.4.1 Operating cash flow/Revenue 2.4.2 Free cash flow 2.4.3 Cash in hand 3.0 Review of Qualitative Information 3.1 Dialog Mobile 3.2 Dialog Television 3.3 Dialog Broadband Networks 4.0 Information Systems 4.1 Introduction to information systems 4.2 Role of Information
Premium Balance sheet Income statement Cash flow
Overview The footwear industry is a mature‚ very competitive with low growth and stable profit margins. Active Gear‚ Inc. is a privately held footwear company which is a profitable firm in the industry with $470.3 million revenue in 2006. West Coast Fashions‚ Inc is a large business of men’s and women’s apparel decided to dispose of one of their divisions: Mercury Athletic with $431.1 million revenue in 2006. AGI is very profitable but it is smaller than other competitors‚ which is becoming a competitive
Premium Discounted cash flow Weighted average cost of capital Net present value
Group-based case report Torstar Corporation BUSN81 Theory of Corporate Finance 2011 Autumn 1. Introduction The case of Torstar Corporation suggests the plan and result of repurchasing its Class B shares in December of 1997. Besides this‚ the situation of its business structure‚ capital structure and expenditures‚ future plan are also described in the case. Therefore‚ the purpose of our case study is to state‚ analyze and drew to some important conclusions about Torstar Corporation
Premium Dividend Operating cash flow Cash flow
1. Do you think Mercury is an appropriate target for AGI? Why or why not? Mercury is an appropriate target for AGI. AGI is looking to increase its revenue and profit by utilizing synergies. The initial aim of AGI for acquiring Mercury Athletics is to increase leverage with contract manufacturers and to boost the cooperation with the retailers and distributors. AGI was one of the most profitable and successful companies in the market segment‚ but the firm’s size remained rather small in comparison
Premium Free cash flow Generally Accepted Accounting Principles Net present value
acquisition of a company is to complete an excess free cash flow analysis. This method is designed to estimate the present value of a business. To run this analysis‚ an analyst needs to determine the correct discount rate to use‚ which is also a company’s estimated weighted average cost of capital. An estimation of a company’s long-term growth rate also needs to be made. Then using this estimated growth rate an analyst needs to determine the excess free cash flow per period‚ which is the amount of cash
Premium Net present value Cash flow Discounted cash flow
Mercury Athletic Footwear Case Assignment Questions: 1. Is Mercury a good target for AGI? Discuss strategic fit of brands‚ products‚ customers‚ and distribution. Identify specific sources of value. Discuss AGI’s strengths/weaknesses compared with other bidders. I think Mercury is a good target for AGI: The brands--the AGI brands and logos are associated with a lifestyle that was prosperous‚ active and fashion-conscious. The Mercury brands are athletic and casual footwear. The products--AGI focused
Premium Discounted cash flow Weighted average cost of capital Free cash flow
company plans to sell its properties‚ which should reduce asset size by INR 960mn and recover advances worth INR 1.1bn from trusts. This would lower the asset base by about 50%. Further‚ 1.5x property value of book assets would raise incremental cash flow of INR 1.45bn‚ reducing overall K-12 book value to just INR 300mn‚ which will be amortized over
Premium Cash flow Free cash flow