Instruction
DCF Valuation
Use Sheet “8” for this assignment.
After completing DCF valuation and sensitivity analysis as shown in the video lecture, do a scenario analysis for Cooper Dental DCF valuation, using scenario manager under What-if Analysis.
Optimistic: sales growth 18%, COGS/Sales 0.4, WACC 12%, FCF growth rate 8%
Pessimistic: sales growth 5%, COGS/Sales 0.55, WACC 16%, FCF growth rate 3%
Generate a summary report showing the result of estimated value per share (from both normal method and mid-year discounting method). Clearly label the variable names in the summary report.
If you are using Mac and your Excel crashes while trying to generate scenario summary, it's probably not your fault, Mac has issues with scenario analysis in models with iterative calculation. You can either use a Windows laptop to complete the scenario summary, or if it's too much trouble, you can just upload the DCF model page with sensitivity analysis. I can see your scenarios recorded in your scenario manager even without a summary output.
M3 Assignment - DCF Valuation Rubric
Input two scenarios in scenario manager 4 pts
Generate summary report 1 pts
Total 5 pts