Two part essay. Part one was creating a valuation for the company Burberry in excel using the the discounted cash flow method, the sheet contains all the formulas and references to values. Part two was a justification for the values used. I used multiple valuation firms (yahoo finance, fidelity, mo...
Horizon Period 7 years
Operating Profit next year 570m
Growth 9.20%
ROIC % 17.54%
Cost of Capital % 11.21%
Reinvestment 52.46%
Continuing Perpetuity After year 7
Growth (Industry average) 4.12%
ROIC (Estimate) 10.54%
Reinvestment 39.07%
Cost of Capital 11.21%
May-23
3.54% Rf UK Gilt 7 year bond yield 3.54%
Beta 1.41 (Average) 1.41
RP 5.44% Estimate 5.44%
Cost of Capital after perpetuity 12.24%
Growth Perp Perpetuity
1.09 34.32% Growth 4.12%
Year 0 1 2 3 4 5 6 7 8
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