Can someone post a valuation project on any indian company as soon as possible.
Find the enterprise value of any company or unit of a company.
1. Obtain last 3 years financial statements of a company and calculate FCF for last 2 years.
2. Conduct E-I-C analysis (economy, industry and the company analysis).
3. Determine the explicit and implicit period and the growth rate.(assumption)
4. On the basis of the past financials, forecast the future financials, clearly stating the assumptions made while preparing the future financial statements for the explicit period.
5. Calculate the free cash flows (operating) for the explicit period and also determine the terminal value of FCF for the implicit period.
6. Obtain the cost of debt. The cost of equity can be calculated using CAPM model or assume cost of equity 4-5 % higher than the cost of debt. Calculate WACC to be used for calculating DCF value of the firm.
7. Add non-core investments to the DCF value to get the intrinsic value of the firm
8. Deduct market value of debt from the DCF value to get the value of equity