Using a percent of sales method of forecasting to forecast income statement and balance sheet items that will be used in the valuation. We have devised three different valuation Scenarios, Normal Case, Best Case and Worst Case Scenario.
2. The Sales growth varied under each scenario according to certain assumptions and outlooks about the company
3. Terminal Value is calculated by using the constant Gordon growth model from the horizon year to infinity and then discounting this horizon value to the present at the WACC.
4. After discounting FCFF and adding them to the terminal value. The resulting value is divided by number of shares to reach fair price.
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