In this assignment, your goal is to try to reverse engineer Tesla, Inc.$$s $($NasdaqGS:TSLA$)$ stock price using both discounted cash flow analysis and multiples valuation.

$1.$ Value TSLA using discounted cash flow analysis.

$2.$ Value TSLA using market multiples.

a$.$ Value the company based on both the PE ratio and the market$-$to$-$book ratio. $($This will yield two different valuations, which are likely both different from your DCF valuation$).$

$3.$ Edit your inputs and underlying assumptions in each model as you see fit $($within reason$)$ to try to get as close to the actual market price as possible.

$4.$ Submit a one$-$page tear sheet that summarizes the following:

a$.$ Your calculations. This should include:

$$ For DCF $(5$ points each$)$:

o Free cash flow forecasts by year

o Terminal cash flows

o Discount rate

o Present value of cash flows

o Total calculated firm value

o Firm debt and noncontrolling interest

o Calculated value of equity

o Shares outstanding

o Implied stock price

$$ For each multiples valuation $(5$ points each$)$:

o Chosen peer firms

o Value of peers$$ multiples

o Calculation of your firm$$s implied stock price based on peers$$ multiples

b$.$ A few sentences reflecting on $(10$ points total$)$:

$$ How do your valuations compare to TSLA$$s actual share price?

$$ Did you have to edit your inputs$/$assumptions to get close to the current market price?

$$ Do these assumptions seem reasonable? What valuation do you think is the $$correct$$ one for TSLA?