Company name: Medtronics
Kindly use the template below to complete the DCF USE EXCEL
1. Fundamental valuation. Discounted cash flow (DCF) of the forecasted free
cash flows to get Vop and from Vop, back out what should be the fair/intrinsic
stock price. The future free cash flows
are typically estimated using the sales-based
method. That is: you forecast the sales (typically five years out), and
then the key income statement and balance sheet items that come in the Free
Cash Flow formula are computed as a percentage of sales based on the last three
years (e.g., COGS has been on average 60% of sales, so you project them to
continue to be 60% of sales going forward, unless you can state otherwise). Include
an estimate of your firm’s weighted average cost of capital (WACC). Sensitivity analysis (using
Data Table in Excel) is not necessary but is a plus.
Income Statement (for citation): https://www.stock-analysis-on.net/NYSE/Company/Medtronic-PLC/Financial-Statement/Income-Statement
Balance Sheet (for citation):
https://www.stock-analysis-on.net/NYSE/Company/Medtronic-PLC/Financial-Statement/Assets
Statement of Cash Flows (for citation):
https://www.stock-analysis-on.net/NYSE/Company/Medtronic-PLC/Financial-Statement/Statement-of-Cash-Flows
Liabilities