How do you make a 3-year and 5-year horizon forecast for valuation of Company A using the
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Question:
How do you make a 3-year and 5-year horizon forecast for valuation of Company A using the following facts:
NOPLAT = 10.0 (growing at 20% years 1-3, declining 7% after)
Depreciation = 2.5 (depreciation = 25% of NOPLAT in year t)
Gross Investment in Year 1 = 13.61
ROIC = 18% for years 1-3, 11% after
WACC = 14% for years 1-3. 12% after
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