Pepsi Valuation

Assignment Requirements

 

I will upload a document called PEP Valuation Rubric, which will include the criteria used to value the company PEP ( Pepsico, Inc. (PEP) -NYSE), I will also upload a excel document that will include an spread sheet that needs to be filled with the PEP numbers, Also use the forecasting assumptions used in the excel for PEP

Also , I will upload powerpoint slides that can be beneficial regarding this course work

FIN449

Valuation #2 Rubric

 

In this project, the whole valuation process should be part of a comprehensive whole. In this project, specific line items being forecasted will be adjusted to get a more accurate valuation using FCFF & FCFE

 

Valuation #3 will be graded on the following criteria:

– Process (e.g. documented assumptions, robust analysis, follows accepted steps, etc.)

– Legitimacy (e.g. inputs & outputs make economic sense, follow reasonable patterns, are due to identifiable causal relationships, etc.)

– Technique (e.g. correct computations are chosen, computations are made properly)

– Thoroughness (e.g. Double check results vs other methods)

 

Please email me a copy of your workbook so I can help understand any issues I see in your work. Format your work similarly to the strawman exercise and title the file in this way: PEP.your.name.xls

 

Make sure your FCFF & FCFE are computed for all years, historic and forecast. Your valuation should be based on forecast years 2014-2018.

 

Your work should have all the elements of the previous assignments, as well as:

 

• Sales growth by segment and overall, attributing % growth to Volume and to “Pricing, etc.” as well as the resulting % revenue growth.
• COGS for overall company
• SG&A for overall company
• Cash for the whole company
• A/R for the whole company
• Inventories for the whole company
• PP&E for the whole company
• A/P for the whole company
• Include Degree of Operating Leverage in your useful ratios (use GP/OpInc to estimate DOL)
• Computation FCFF & FCFE without adjustments then…

o   Adjust for effect of inventory method (if appropriate)

o   Adjust for operating leases

o   Adjust for R&D (if appropriate)

• Determine your best estimate of the Cost of Equity, including beta regression & bottom-up methods
• Determine the Cost of Debt to be used in WACC
• Computation of equity value by discounting adjusted FCFE with Ke AND
  computation of the enterprise value (EV) by discounting adjusted FCFF with WACC
• Compute the market value of debt
• Estimate the equity value by subtracting the MV of debt from the enterprise value
• A comparison of the target firm to comparable firms, including the useful ratios and the P/E, P/S and EV/EBITDA for each. In addition, show the relative valuation of the target firm from the P/E and P/S of an index of the comparable companies.

 

 

 

 

Order Now

http://zelessaywritings.com/order/

 

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.

 

[order_calculator]