Asset Pricing Report Assessment
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FINM2416 Asset Pricing Report Assessment
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Free Cash Flow Valuation Report – Individual Assessment (25 percent of total grade)
You are required to produce a report based on a free cash flow valuation of a company from
the standpoint of an equity analyst. Overall, you will provide an evaluation of the investment
potential of the company's shares.
Overview: The objective of this assignment is to assess a student’s ability to value the
equity of a company. The student must choose a publicly listed company from a non-
financial and non-regulated industry in Australia which has the last 3 years of annual results
available and has been making profit (EBIT is positive). Please note that one company is to
be chosen by only ten students. A blank editable Excel file with a predetermined list of
companies from the Company selection excel link is available under the Assessment Free
Cash Flow Valuation of a Company. It is recommended students enter their LAST and FIRST
name in the row of the company they wish to select, and save the file. The assignment is a
total of 100 marks for 25 percent of the total grade.
Requirements:
1. You will need to gather all the necessary financial data using Capital IQ (after first
registering). You must select a company that satisfies the following requirements:
a) Primary listing on the ASX.
b) Included in the ASX200 index.
c) Not part of the financials, utilities, and real estate industries.
d) Market capitalisation latest more than AUD 2 billion dollar.
e) The company had a positive EBIT for the past three financial year ends (i.e. FY2021–
FY2023, or FY2022–FY2024 depending on when the financial year ends for the
company)
Provide a screen shot of your Screen Builder (in Appendix). How many companies satisfy
the criteria? (5 marks)
2. Provide a brief introduction of your selected company and your report. (5 marks)
3. Value your chosen company using free cash flow methodology.