Question: Free cash flow and DCF analysis Using all the relevant information for your company, calculate your companys free cash flows for the last financial year.

Free cash flow and DCF analysis

Using all the relevant information for your company, calculate your companys free cash flows for the last financial year. Tabulate your results, making sure that you show all relevant data used in the calculation.

Discuss whether DCF analysis is an appropriate valuation method for your company. If so, estimate the intrinsic value of your companys equity assuming free cash flow with an estimated growth rate, which needs to be justified, and then make an investment recommendation (either buy, sell, or hold). If you believe DCF analysis to be an inappropriate valuation method for your company, you need to contact the subject coordinator to be assigned another company.

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