Automobile Valuation Predictions Actual Current Price $ 76 P/E Valuation (Ordinary) $ 131.38 P/E Valuation (Segment Adjusted) $ 119.46 PEG Valuation $ 153.5 M/B Valuation $ 66.58 EBO (Abnormal Earnings) Valuation $ 43.97 DCF Valuation $ 84.71 Performance of HMC 52 week change of HMC Return on S&P 500 8.1% -16.8% Investment Summary • We assign a rating of market outperform on Honda Motor Company at its current price of $76 and a 12-month target price of $85 (based on DCF valuation). • Comparative
Premium Financial ratio P/E ratio Honda
Acquisition of Consolidated Rail – Case Study 1. Background Info - Conrail 1.1. Formed from the remains of the six bankrupt North-eastern railroads in 1973 1.2. Earned its first profit in 1981- $39.2m on revenues of $4.2bn. Privatised through an IPO in 1987 1.3. Major player in North-eastern cities and their connection with major Mid-western hubs 1.4. In 1995‚ had 23‚510 employees‚ operated 10‚701 miles of track and controlled 29.4% of the eastern rail freight market 1.5. Financial indicators-
Premium Stock market Stock Discounted cash flow
Gillette should receive closer to $60/share‚ and while an offer of $54.05 is a deal that is not as good as it could be‚ it is better than no deal at all. Using transaction multiples‚ we see that Gillette is being valued well above the market in valuations involving revenues‚ EBITDA and P/E multiples. Also‚ large benefits come to shareholders in the method of acquisition. Although it is an all-stock deal‚ shareholders are receiving a nearly 1-for-1 ratio of trade for the shares. However‚ P&G
Premium Stock Stock market Investment
000 A . Assume annual cash flows are expected to remain at the $800‚000 level after Year 5 (i.e.‚ Year 6 and thereafter). If TecOne investors want a 40 percent rate of return on their investment‚ calculate the venture’s present value. Answer: DCF PV = -$50‚000/1.4 + -$20‚000/1.42 + $100‚000/1.43 + $400‚000/1.44 +
Premium Cash flow Net present value Investment
Arundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights‚ the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out the value
Premium Option Discounted cash flow
FOREIGN DIRECT INVESTMENT (FDI) Under the Foreign Direct Investments (FDI) Scheme‚ investments can be made in shares‚ mandatorily and fully convertible debentures and mandatorily and fully convertible preference shares1 of an Indian company by non-residents through two routes: • Automatic Route: Under the Automatic Route‚ the foreign investor or the Indian company does not require any approval from the Reserve Bank or Government of India for the investment. • Government Route: Under
Free Foreign direct investment Investment Invest in America
Molson Coors Alcoholic Beverages Industry‚ Team 1 Leah Black Professor Shaked‚ FE449 12:30PM Section Industry Information -Make sure to add info about craft beer -Shift away from beer and towards liquor Key Industry Drivers For beer‚ wine and liquor‚ demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions
Premium Cash flow Revenue Discounted cash flow
outstanding Genentech shares‚ in the article was mentioned that some (cost reductions) efficiencies could be achieve by Roche by itself after the analysis 4) Based on DCF valuation techniques‚ what range of values is reasonable for Genentech as a stand-alone company in June 2008? Please exclude synergies from your valuation and use a 9% WACC. You can assume that at the end of June 2008‚ Genentech held approximately USD 9 billion in cash‚ which included investments and securities that were not
Premium Stock market Stock Shareholder
an attractive valuation? - The investment merits should be preferably unique - When highlighting these merits try to mention how your expectations differ from that of the commonality! ) 1 4) Discuss the industry – Form a basis for your decision ( Helps to make you position clear: - Market analysis‚ - Environment analysis‚ - Strategy development‚ - etc. ) 5) Give your valuation argument. Use comparable Multiples (financial metrics/company valuations) and DCFs where appropriate
Premium Stock market Stock Discounted cash flow
is either a retail or institutional investor seeking to gain an in-depth insight into the profile‚ valuation‚ price‚ risks and growth potential of the equity of the specified company Burberry PLC. The client would expect an analysis of the firm’s business activities‚ its strategy and its future growth drivers. He would also expect a detailed analysis of the firm’s financial performance and a valuation of the firm using several different methods. The client also expects a brief industry analysis‚ identification
Premium Luxury good Economic growth Revenue