Part B - Financial Models Construct a DCF based on the components of the business, conduct...

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Part B - Financial Models Construct a DCF based on the components of the business, conduct one DCF for each major component of the company's business. If the company reports 3 segments, then construct 3 DCFs that roll up into a consolidated DCF. Structure the DCF with 5 future years cash flows and then a terminal period. Don't forget to incorporate Capex into Free Cash Flow projections. Use a Weighted Average Cost of Capital (WACC) to discount the cash flows back to present value. Incorporate your view of the most likely impact of material ESG issues into your analysis. You can adjust growth rates, margins, WACC etc. Assess the intrinsic valuation of your model vs. the current market price to determine upside/downside %. (consider this your Base Case). Compare your base model results to the Street (sell side) Consensus for earnings and revenue and articulate. Now, flex (change +/-) certain variables in your model to create bull & bear case scenarios of ESG risks and opportunities. As before, you can adjust growth rates, margins, WACC etc. Part B - Financial Models Construct a DCF based on the components of the business, conduct one DCF for each major component of the company's business. If the company reports 3 segments, then construct 3 DCFs that roll up into a consolidated DCF. Structure the DCF with 5 future years cash flows and then a terminal period. Don't forget to incorporate Capex into Free Cash Flow projections. Use a Weighted Average Cost of Capital (WACC) to discount the cash flows back to present value. Incorporate your view of the most likely impact of material ESG issues into your analysis. You can adjust growth rates, margins, WACC etc. Assess the intrinsic valuation of your model vs. the current market price to determine upside/downside %. (consider this your Base Case). Compare your base model results to the Street (sell side) Consensus for earnings and revenue and articulate. Now, flex (change +/-) certain variables in your model to create bull & bear case scenarios of ESG risks and opportunities. As before, you can adjust growth rates, margins, WACC etc.