Estimating the Value of a Company – Fiat Chrysler Automobiles (FCA) – in Excel

Calculate : 

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
  • Asset valuation approach :   For this method, we determine the company’s book value or net asset value derived from the account balances on the balance sheet by taking the sum of the value of the assets and then deducting the total liabilities to arrive at a value for net assets.

 

  • Hybrid valuation approach: For this method we can combine the asset valuation approach with the income approach to arrive at an estimated value. This rather comprehensive estimate can be a challenge, as it ideally considers all aspects of a business, both tangible and intangible, and may be very different from the market value. This might also be referred to as estimating the company’s intrinsic value.

2

>Sheet

1

Assets- Total liabilities

United States Dollar as of 02.01.2022

s

Years 2016 2017 2018 2019 2020

343

Total Assests

9

Total Liability

No.of outstanding

Year 2018 2017 2016

using the CAGR

Year 1 2 3 4 5
Projected FCF

of Projected FCF

Year 1 2 3 4 5 Total

Projected FCF 11526.75 12564.1575 13694.931675 14927.47552575 16270.9483230675

PV

= PV of FCf of the year 5 X 10

Terminal Value

1.Assets valuation approach :
Net Assets method =

Total
Net Assets per share = Net Assets / No. of outstanding share
Fiat Chrysler Automobiles N.V ( in € million ) 1 euro equals 1.1

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
3 in $ million
Year 2016 2017 2018 2019 2020
Total Assests 10

4 96299 96873 98044 99730 $117,907.

5 $108,817.87 $109,466.49 $110,789.72 $112,694.90
Total Liability 49469 47269 71970 63369 73869 $55,899.97 $53,413.97 $81,326.10 $71,606.97 $83,471.97
No.of outstanding 1526 1556 1568 1571 1572 $1,724.38 $1,758.28 $1,771.84 $1,775.23 $1,776.36
3. Hybrid valuation approach ( estimating the company’s intinsic value )
Home Depot ( as an example ) Fiat can be done same way but for 5 years
Intrinsic Value of a Company
Future cash Flow in million dollars
You will be using the most recent three years 2018,2019 and 2020
Cash from Operations 13,038 12031 9783
Capital Expenditure -2463 -2275 -1621
Please note you may sometime have negative free cash flows. In that case you will not use
FCF 10,575 9756 8162 this method. This will be a good justification for not selecting this method. Of course you need to
show calculations.
You can use arbitrary growth rate and justify it
OR
Compute Compound Annual Growth Rate (CAGR)
CAGR= (EV/BV)^(1/N)-1
0.0901709251
Compute

Projected FCF
11526.75 12564.1575 13694.931675 14927.47552575 16270.9483230675
PV
Pvf at 10% 0.90909 0.8264 0.75132 0.68301 0.62092
10478.8531575 10383.019758 10289.276066061 10195.6150588425 10102.9572327591
Toal PV of projected FCF $ 51,449.72
Terminal Value
(It is subjective. Generally take 10 or 12 times of the project FCF of 5th year)
10102.9572X10 101,029.57
Total of PV of projected FCF and Terminal Value 152,479.29
Cash and Cash Equivalent 1,778
Intrinsic Value of company ( Total PV of Projected FCF+ Terminal Value+Cash and Cash Equivalents) 154,257.29 154.2572936008 Billions
Inrinsic Value of a share
No. outstanding shares 1,103,903,507 1,104 millions 139.725809421 per share intrinsic value
Or round it to
$140 per share

Order a unique copy of this paper

600 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal

Order your essay today and save 25% with the discount code GREEN