Business Valuation Assignment
The assignment comprises 40% of the assessment for U21098 Corporate Finance and Valuation Unit.
Select a company from FTSE AIM All-Share. You will be required to apply two different valuation techniques. You will prepare an investment valuation report in which you will critically evaluate, analyze, discuss and comment upon the key issues in the valuation of your selected company.
The report will explicitly address the following matters:
1. An analysis of the current business and financial situation of your company.
A discussion and analysis of your forecast of the company’s future expected economic benefits stream. (30%)
2. An appraisal and assessment of the appropriate weighted average cost of capital to be applied in the valuation. (5%)
3. A quantitative assessment of value using a discounted cash flow methodology and a relative valuation approach.
o An appraisal and discussion of the key assumptions contained within the valuation and a sensitivity analysis showing how value might change given a range of appropriate assumptions.
o A brief critical evaluation of the methodologies applied, analyzing issues which in this specific valuation may impact upon the propriety of the value conclusion. (40%)
4. A conclusion of value compared to market, with an opinion on value per share and based on this a recommendation on whether the company is a suitable investment. (15%)
10% will be awarded for presentation (this will include structure, clarity and use of grammar).