Multiples versus DCF analysis Multiples analysis is simple to understand and apply. The inputs for the multiple arepublicly available‚ though are vulnerable to accounting manipulation. Also‚ it isdifficult to obtain a truly comparable large sample of firms. Multiples analysis isbackward-looking‚ reliant on historical/current data to obtain multiples. It reflectsrelative value rather than the intrinsic value which DCF valuation produces.DCF analysis generates an intrinsic value as it relies on data
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financial data. 2. Select appropriate discount rate based on WACC 3. Discount each cashflow back to it present value 4. Obtain the terminal value through an application of terminal value multiple 5. You add these values together 6. Using this method‚ Martin calculates the price of Cox’s share to be $54.29 Multiple Valuation: 1. Identify comparable firms that have growth‚ cashflow and risks similar to those of target firm whose value is in question. 2. Obtain the individual multiple or ratio of the
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Laura Martin: Real Options and the Cable Industry Group 13 Adarsh N (60) Gaurav Chand (82) Hemant Kumar (83) Prateek Gupta (99) Rohan Gupta (104) Sahil Jindal (105) Individual Contribution: 16.67% for all group members Strategic Financial Management Prof. K . Sudershan Ques 1. What is the role of Laura Martin? Consider the multiples analysis developed in Exhibits 2‚ 5 & 6. What assumptions does this analysis rely upon? Role: Laura Martin is a sell-side equity analyst at
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Laura Martin case study Question 1- Laura Martin says she gets "paid to talk" - to whom is she talking? Answer: Laura Martin is talking with investors. She would meet with many company representatives including the CEO‚ CFO‚ operating division chiefs and head of investor relations. She is in connections with these investors via telephone‚ fax‚ voice mail or email. It is approximately 900 individual per month. Question 2- Given this crazy web of relationships‚ what are Martin’s incentives
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MUI group/ Laura Ashley case study When Tan Sri Dr KP Khoo‚ Chairman of the MUI Group‚ a Malaysian conglomerate‚ saw that Laura Ashley was under financial strain‚ he thought the British company was worth saving. Download the PDF For easy printing you can download the PDF version of this case study. If you do not have Adobe Reader you can download a free copy. Laura Ashley fashion and home furnishings are popular all over the world. The company has come a long way since Laura and Bernard
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Laura Martin: Real Options and the Cable Industry Introduction Laura Martin‚ an equity research analyst for cable stocks‚ believes that the best way to value cable stocks is through creative methods such as real options and not through more traditional or typical valuation methods such as EBITDA multiples‚ ROIC analysis and DCF analysis. In 1999 she presented at the Credit Suisse First Boston Broadband conference‚ where she wanted to portray the message that real options is a superior valuation
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Laura Martin: Real Options Valuation in the Cable Industry Case Questions 1. What is the nature of Laura Martin’s job? Define the specific problem that she is addressing. A. Laura Martin is an equity research analyst. This was a unique opportunity to demonstrate her knowledge of the drivers of value in the cable industry. She was going to reveal the value of stocks of cable industry using real options‚ which is a more realistic way of evaluating the value of a project than EBITDA multiples
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Advanced Corporate Finance and Modeling – FINA0065-1 Assignment #1 – Laura Martin: Real Options and the Cable Industry 1. Consider the multiples analysis developed in Exhibits 2‚5 & 6 Please describe the method of ‘Multiples’ using case numbers and answer to the following questions: 1.1. What assumptions does this analysis rely upon? 1.2. How is Martin’s regression analysis different from/similar to traditional multiples analysis? 1.3. Do you agree with her interpretation of the regression
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providing treatment for Martin as soon as possible is best thing to do since the doctor catches the bladder cancer early before it spreads to other body parts‚ and cause more damage. As soon as Martin agrees and the doctor starts the procedure‚ the better chance Martin has of living a full life. Martin refuse to listen to anything the doctor and other health care team have to say. He clearly made his mind that the doctor has no idea what he is talking about and denying treatment. Martin also did not trust
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Stylistic analysis of a short story by Saki "Laura" The story under analysis is titled "Laura". It is written by British author‚ master of the short story Hector Hugh Munro‚ better known by the pen name Saki. The very story belongs to fiction genre with a unique touch of mystery‚ psychological themes‚ as it concerned with two main heroines ’ (Laura and Amanda) emotional states. The tone of the story is full of irony and even sarcasm‚ especially in the dialogues and closing lines. The mysterious
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