Corporate Valuation Using the Free Cash Flow Method Applied to Coca-Cola - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Corporate Valuation Using the Free Cash Flow Method Applied to Coca-Cola write by Carl McGowan. This book was released on 2014-10-15. Corporate Valuation Using the Free Cash Flow Method Applied to Coca-Cola available in PDF, EPUB and Kindle. The value of a corporation is the discounted present value of future cash flows provided by the company to the shareholders. The valuation process requires that the corporate financial decision maker determine the future free cash flow to equity, the short-term growth rate, the long-term growth rate, and the required rate of return based on market beta. This book provides a template for demonstrating corporate valuation using a real company—Coca-Cola. The data used in this book comes from the financial statements of Coca-Cola available on EDGAR. Other data are from SBBI, Yahoo! Finance, the U.S. Bureau of Economic Analysis, Stocks, Bonds, Bills, and Infla-tion, Market Results for 1926–2010, 2011 Yearbook, Classic Edition, Morningstar, and US Department of the Treasury.
Applying the Free Cash Flow to Equity Valuation Model in Coca-Cola Hellenic
Applying the Free Cash Flow to Equity Valuation Model in Coca-Cola Hellenic - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Applying the Free Cash Flow to Equity Valuation Model in Coca-Cola Hellenic write by Maria Dimitriou. This book was released on 2020. Applying the Free Cash Flow to Equity Valuation Model in Coca-Cola Hellenic available in PDF, EPUB and Kindle. In this paper, I present the process of applying the Free Cash Flow to Equity valuation model in Coca -Cola Hellenic Bottling Company S.A. in order to determine the value of its stock. The value of the firm's stock is calculated by forecasting Free Cash Flow to Equity and discounting this cash flow back to the present at the appropriate required cost of equity. In addition to computing free cash flow to equity, this paper will show you how to calculate the expected growth rate pattern and the cost of equity. To achieve this, the Free Cash Flow to Equity was calculated from 2009 to 2011 based on a sum-of-the-parts approach that values the three main geographic businesses of the company separately: Western Europe and both Eastern Europe and West Africa. Additionally, an anticipated growth rate was used to estimate the future value of Free Cash Flow to Equity in three years. Also, the present value of this flow in the appropriate growth pattern was forecast regarding yield discount rate which was demanded the stock of Coca-Cola Hellenic from the year 2012 to 2014. Finally, the intrinsic value of Coca-Cola Hellenic will be calculated using the sum of 3 anticipated Free Cash Flow to Equity plus the end value of the company at t=3. Dividing the total value of equity by the number of outstanding shares gives the value of its stock.
Valuation Methods and Shareholder Value Creation
Valuation Methods and Shareholder Value Creation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Valuation Methods and Shareholder Value Creation write by Pablo Fernandez. This book was released on 2002-08-30. Valuation Methods and Shareholder Value Creation available in PDF, EPUB and Kindle. This text provides a catalogue of valuation tools, together with guidance on analyzing and valuing a business. The author breaks down the topic to provide advice for any business, no matter how complex. He presents eight different methods of firm valuation and discusses the benefits and limitations of each method, supporting this information with examples from international markets.
The Free Cash Flow Approach
The Free Cash Flow Approach - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Free Cash Flow Approach write by Ralph Johann. This book was released on 2008-09. The Free Cash Flow Approach available in PDF, EPUB and Kindle. Seminar paper from the year 2005 in the subject Business economics - General, grade: 1.3, California State University, Fullerton, course: Theory of Corporate Finance, 21 entries in the bibliography, language: English, abstract: This paper will deal with the procedure and implementations of firm/stock valuation using FCF approach and WACC - the weighted average cost of capital. On the road, the different approaches and methods of firm valuation, the various inputs of WACC and the final procedure finding the fair market value of the firm using Pro Forma Financial Statements, will be discussed. In this valuation method the two main parts contributing to the final value of the firm are Free Cash Flows (FCF) and the weighted average cost of capital. It is then used the time value of money concept along with some educated guesses about the long term sales growth rate and the long term WACC to apply common capital budgeting rules of project evaluation. Besides that, the paper will shortly discuss the influence of capital structure on a firm's value. It will come out that there is a difference in value whether the company is leveraged and uses debt or not. When it comes to the different inputs of the WACC, a main focus will be on the required rate of return for shareholders. Finding the 'right' beta and an appropriate estimate for the market risk premium are the main issues of that part. Therefore, the CAPM model and its specific determinants will be analyzed. Thereafter, the nature of pro forma financial statements and the different parts of them will be defined. It will be described how the 'free cash flows' are determined and how that leads to the actual valuation procedure. Finally, the paper will focus on the terminal value as probably the most important and affecting part of the calculated firm value and its nature as a perpetuity in an investing perspective. The conclusion will finally deal with a critical assessment of the firm valuation process with the FCF method.
The free cash flow approach
The free cash flow approach - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The free cash flow approach write by Ralph Johann. This book was released on 2008-09-09. The free cash flow approach available in PDF, EPUB and Kindle. Seminar paper from the year 2005 in the subject Business economics - General, grade: 1.3, California State University, Fullerton, course: Theory of Corporate Finance, language: English, abstract: This paper will deal with the procedure and implementations of firm/stock valuation using FCF approach and WACC – the weighted average cost of capital. On the road, the different approaches and methods of firm valuation, the various inputs of WACC and the final procedure finding the fair market value of the firm using Pro Forma Financial Statements, will be discussed. In this valuation method the two main parts contributing to the final value of the firm are Free Cash Flows (FCF) and the weighted average cost of capital. It is then used the time value of money concept along with some educated guesses about the long term sales growth rate and the long term WACC to apply common capital budgeting rules of project evaluation. Besides that, the paper will shortly discuss the influence of capital structure on a firm’s value. It will come out that there is a difference in value whether the company is leveraged and uses debt or not. When it comes to the different inputs of the WACC, a main focus will be on the required rate of return for shareholders. Finding the ‘right’ beta and an appropriate estimate for the market risk premium are the main issues of that part. Therefore, the CAPM model and its specific determinants will be analyzed. Thereafter, the nature of pro forma financial statements and the different parts of them will be defined. It will be described how the ‘free cash flows’ are determined and how that leads to the actual valuation procedure. Finally, the paper will focus on the terminal value as probably the most important and affecting part of the calculated firm value and its nature as a perpetuity in an investing perspective. The conclusion will finally deal with a critical assessment of the firm valuation process with the FCF method.
