Harley Davidson DCF WRITTEN Financial valuation report

Need help with my Excel question – I’m studying for my class.


The purpose of the final team project is to give students the opportunity to apply the tools they have learned to a “real world” valuation of a publicly traded company. You should think about this as being of a similar standard as the valuation reports produced by professional equity analysts at major research firms.

The hard copy submitted to me should appear to be professionally done and suitable for submission to a senior corporate executive, a lender, or private equity investor. This project document must not exceed 20 pages in length (excluding appendices). Because this class places a strong emphasis on Excel modeling, the quality and clarity of the spreadsheets submitted will be an important component of the grade for this project.

The components of the final report should include:

1.An executive summary, which should conclude with an estimated value of the stock price of the company.

2.A company overview with the following details:
a. Business overview
b. The company’s key products
c. Key customers and suppliers
d. Key competitors
e. Important events that have happened to the company during the semester

3.SWOT analysis (identification of the company’s strengths, weaknesses, opportunities, and threats)

4.Financials with the following details:
a. Common-size income statement (vertical and horizontal analysis) for each of the most recent 5 years. Identify and comment on any trends or issues.

b. Key ratios for each of the most recent 5 years. Identify and comment on any trends or issues. The ratios should include at least (you may include more if there are industry-specific ratios that that important for the firm): quick ratio, total debt ratio, times interest earned, inventory days, total asset turnover, ROA (return on assets), ROE (return on equity), DuPont decomposition of the return on equity.
c. Compare each of these key ratios to the industry average (or the average of the peer group). Identify and comment on any trends or issues.

d. Use graphs in this section to display and compare key trends.

5.Company valuation using the discounted cash flows methodology
a. Explain the assumptions used in the DCF model
b. Explanations of terminal growth rate and exit multiple used
c. Regression beta and bottom-up beta
d. Sensitivity analysis and explanations

6.Company valuation using the public comparables methodology
a. Identification and justification of the peer group firms.
b. Explain your selection of the multiple ranges

7.An analysis of one important current event that has impact the firm during the semester and how that has impacted your valuation estimates

8.One quoted section from the MD&A section from the 10-K, 10-Q, or 8-K and a discussion of how that impacts your valuation (must be distinct from section 7 above)

9.Summary of the values provided by different methodologies.
a. Football field valuation chart
b. Conclusion and investment recommendation (based on the current stock price)

10.Any exhibits or appendices.

Please answer the following question that are bold and underlined. The remaining questions are answered already on the attached files below Harley Davidson Milestone 1, Harley Davidson Milestone 2 and Excel Harley Davidson. If you have any questions please contact me as soon as possible.

Thank You!

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