Question: Forecasting Future Free Cash Flows based on the five years' Financials, for NUCOR- https://icrm.indigotools.com/IR/IAC/?Ticker=NUE&Exchange=NYSE and conducting the relative valuation for your companies. DCF valuation is

Forecasting Future Free Cash Flows based on the five years' Financials, for NUCOR- https://icrm.indigotools.com/IR/IAC/?Ticker=NUE&Exchange=NYSE and conducting the relative valuation for your companies. DCF valuation is optional this week, and you are encouraged to try it by using the collected WACC, i.e., from FactSet or Bloomberg.

Excel Template and Example for Forecasting the future cash flows (Sale-based Method): Forecasting future cash flows example.xlsx I CANT UPLOAD EXCEL FILE_ IF PROVIDE EMAIL CAN(Please note that this Excel file is tailored to my example firm's items. You are required to adjust the balance sheet and income statement items according to your company's specifics, rather than adhering to all the details of my example company.)

One submission per team on Canvas. And please name your submitted file "Task3_B31_GroupX".

  • Fundamental valuation. Discounted cash flow (DCF) of the forecasted free cash flows to get Enterprise Valuation and then back out what should be the fair/intrinsic stock price. Thefuture free cash flows are typically estimated using thesales-based method. Collecting the past three years' income statement and balance sheet information for your companies, and using the template provided on Canvas to project the future cash flows for your companies. That is: you forecast the sales (typically five years out), and then the key income statement and balance sheet items that come in the Free Cash Flow formula are computed as a percentage of sales based on the last three years (e.g., COGS has been on average 60% of sales, so you project them to continue to be 60% of sales going forward, unless you can state otherwise).

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