Pacific Sunwear, Inc. – Valuation Analysis Valuation Method | Weight | Implied Value | Relative Valuation | 30% | $2.69; Range of $2.04 - $3.06 | Regression | 35% | $2.30; Range of $2.10 - $2.50 | Discounted Cash Flow | 15% | $2.37; Range of $1.92 - $3.18 | Precedent Transaction Analysis | 20% | $2.30; Range of $1.47 - $3.66 | | Value Range | $1.47 - $3.66 | | Estimated Price | $2.43 | | Market Price (04/19/13) | $2.40 | | Conclusion | Slightly Undervalued* | | Recommendation
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CORPORATE FINANCE T H IRD E DIT ION JONATHAN BERK STANFORD UNIVERSITY PETER D E MARZO STANFORD UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Rebecca, Natasha, and Hannah, for the love and for being there —J. B. To Kaui, Pono, Koa, and Kai, for all the love and laughter —P. D. Editor in Chief:
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INTRODUCTION OVERVIEW: Today India is on a threshold of massive development, thanks to the various initiatives taken by the Govt. of India over the last 10 years or as we call it the Dawn of the era of liberalization. The economics policies have been liberalized time and again to accelerate the process of industrial growth. The government is making constant efforts to encourage the entrepreneurs by providing the climate conducive for development and growth. as a result of which various
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Authors: Philip Larson American Chemical Corporation I prepared my answers by myself before discussing the case with anyone else. I only consulted other members of this class and this work is my own. In particular, I consulted Matt Thompson. 1) Do the circumstances surrounding the sale of the Collinsville plant play any role in your willingness to buy the assets? If so, how, if not, why not? On
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CORPORATE FINANCE T H IRD E DIT ION JONATHAN BERK STANFORD UNIVERSITY PETER D E MARZO STANFORD UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Rebecca, Natasha, and Hannah, for the love and for being there —J. B. To Kaui, Pono, Koa, and Kai, for all the love and laughter —P. D. Editor in Chief:
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• Brief history about the company that you select (to be approved by the Instructor) • Planning and budgeting concerns of the company • The company’s financial ratios and an industry comparison of the ratios • Main products of the company • Financial strategy and/or overall strategy of the company (SWOT analysis) • Future prospects of the company based on your own opinion or relevant research such as Value line or other financial periodicals • Current Stock price or a plotting of the
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TUTORIAL 1 BUSINESS PLANNING & FINANCIAL PLANNING 1. Candidate should explain that a stockholder owns part of a company and is entitled to income in the form of dividends. Stockholders also elect directors who run the company. Stakeholders are groups of people who have an interest in how the firm is run. These include stockholders, employees, management, creditors and customers among others. Each group is interested in the firm’s operation and profitability for its own reasons. All stockholders are
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this area. The firm has $2 billion under management with 64 investments evenly split between venture capital investments and participations in leveraged buyouts. Importance of Terminal Value:Terminal value is the lump-sum of cash flows at the end of a stream of cash flows. It is important when trying to value a firm because that are present in the valuation of just about every asset and in the valuation of stocks and whole companies terminal value is usually a very big value driver. The importance
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2008 | 2009 | Total assets | 4674.7 | 3642.2 | 3493.3 | 3187.6 | 2945.3 | 3030.8 | 2907.7 | Operating CF | 171.7 | 33.2 | 121.3 | 9.8 | (37.5) | 66.9 | 77.8 | OCF/Assets | 0.10% | 0.45% | 0.13% | 0.68% | -0.20% | 0.15% | 0.11% | Operating Cash Flow/Total Assets ratio (Six flags): | 2003 | 2004 | 2005 | 2006 | 2007 |
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