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MBA220 Case #2
Value based management & more!
Outline
Financial statement analysis Financial statement forecasting Intrinsic value computation Project cash ows
Outline
Financial statement analysis Financial statement forecasting Intrinsic value computation Project cash ows
Outline
Financial statement analysis Financial statement forecasting Intrinsic value computation Project cash ows
Compute IGR and SGR of your company and competitors (FSF) Estimate sales growth rate for next ve years. (FSF) Forecast income statement and balance sheet for the next ve years. (FSF) Calculate FCF for each forecast year. (MA) Include separate line items for improvement opportunities. (VBM)
Sample tables
Growth rates Company Yours Leader 1 Leader 2 Leader 3 ROA ROE RR IGR SGR
Financial statement forecasts Item Income statement items Balance sheet items FCF Improvement opportunity items t t +1 t +2 t +3 t +4 t +5
Outline
Financial statement analysis Financial statement forecasting Intrinsic value computation Project cash ows
Sample tables
Company Base - 20% Base - 10% Base Base + 10% Base + 20% Opportunity 1 Opportunity 2 Opportunity n
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Outline
Financial statement analysis Financial statement forecasting Intrinsic value computation Project cash ows
Make up a project for your company to take on. A new product. A new region. Something. (EPCF) Compute incremental cash ows of that project. Note any opportunity costs, externalities, and salvage values. (EPCF) Compute NPV, IRR, MIRR. Should the project be accepted? (PSC) Weave project cash ows into nancial statement forecast. (EPCF, FSF) Compute new intrinsic value.
Sample tables
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