Question: Valuing Snap After the IPO Quiet Period - https://1drv.ms/b/s!AtJKpPWcFiGImg2wSJ5wcsz1Fb5O - Link to Case PDF What growth rates does the FCF forecast assume for revenue? (Hint:

Valuing Snap After the IPO Quiet Period - https://1drv.ms/b/s!AtJKpPWcFiGImg2wSJ5wcsz1Fb5O - Link to Case PDF

  1. What growth rates does the FCF forecast assume for revenue? (Hint: not terminal value but the first years of FCF)
  2. Discuss how Nowak's report argues that Snap will accomplish this growth.
  3. In your opinion, is this growth rate reasonable? Discuss why.
  4. How does the revenue forecast compare against what other analysts have predicted?
  5. Did the analysts with more optimistic FCF forecasts use higher or lower discount rates? (Show a table as well as discuss)
  6. Does this explain why the price target estimates by the different analysts was fairly close even though they had very different FCF forecasts? Explain.

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