GAUGEMARKETS

Here you can find companies valuations based on the discounted cash flow method, and summaries of the companies operations, competitors, risks, and future outlooks. The intend of these reports is solely informative. They are not investment advice.

To value the companies, it will be used the discount cash flow method (DCF). First, the model is going to use the last five years of quarterly financial information. The assumptions are render by using Damodaran information, and proprietary information. The 5 -year cumulative growth is assumed. Furthermore, to offer a scenario analysis, twenty scenarios are created by adding and subtracting 1% to the growth. The future WACC for the analysis is also rendered, and the annual growth is assumed based on the cumulative 5-year growth and long-term economy growth. Finally, the free cash flow used in the forecasting is the mean of the last twenty quarters. With these assumptions, it is calculated the present value of the forecasted free cash flows and the terminal value. After, it is taken into account the equity to debt ratio to get the equity value, which is divided for the number of outstanding shares to obtain the theoretical stock price.