: What is the terminal value (in Year t+3)? Please give your answer in million USD and round it to the nearest integer. For example, if your answer is 3088 million USD, then type in “3088”. View
: Suppose the correct Terminal Value is 6000 million USD (i.e. discard your answer to the previous question), what is the price of 1 share of XYZ using the Discounted Cash Flow (DCF) valuation method? View
: Suppose you observe that a share of XYZ is traded at a price of 35 USD on an exchange. Based on your own estimate of the price of a share of XYZ, would you say that the company is overvalued or undervalued by the market (use the price for one share that you found in the previous question to answer this question)? View
: You are now contemplating the following project: buying 1 share of XYZ today at 35 USD on the exchange. What is the Net Present Value (NPV) of this project? View
: Of course, you also know about the multiples-based valuation method. You would like to use this method to verify if your conclusion regarding the overvaluation or undervaluation of XYZ is correct. View
: Does this new price estimate (i.e. the one you got in the previous question) change your conclusion regarding the undervaluation or overvaluation of XYZ by the market (i.e. does it change your answer to Question 4)? View
: Suppose you have found a lower value for the price of a share of XYZ using the multiples-based method than the DCF method. Given this discrepancy, you are looking for errors you could have made in your forecasts using the DCF method. View
