DCF model analysis for two insurance company
Budget: $30 – $250 USD
You are required to complete DCF model analysis for two insurance companies. The requirements are:
1. All assumptions made with respect to growth in sales, long-term growth g, capital structure mix and calculation of WACC
2. You should lay out in detail the calculation of FCF for the starting year illustrating all adjustments made whether starting from the top (Sales, Revenue) of from the bottom (Net Income).
3. You should conduct a sensitivity analysis making small changes to assumptions such as perpetual growth rate g or growth rate in Sales or Net Income
4. You should summarize your finding in an excel page showing the above assumptions as inputs and illustrating the EV=PV(of all FCF)+PV(Terminal Value)
5. Compare the calculated EV through the DCF method with the current EV of the company.
1. All assumptions made with respect to growth in sales, long-term growth g, capital structure mix and calculation of WACC
2. You should lay out in detail the calculation of FCF for the starting year illustrating all adjustments made whether starting from the top (Sales, Revenue) of from the bottom (Net Income).
3. You should conduct a sensitivity analysis making small changes to assumptions such as perpetual growth rate g or growth rate in Sales or Net Income
4. You should summarize your finding in an excel page showing the above assumptions as inputs and illustrating the EV=PV(of all FCF)+PV(Terminal Value)
5. Compare the calculated EV through the DCF method with the current EV of the company.