QUESTION 1. Provide a valuation (calculation) of two UK PLCs (Public Limited Companies).
QUESTION 2. Offer your recommendation on which one should investors consider, if any.
Your recommendation should be the company that will give a high valuation result in each calculation of the three valuation models to be used.
it is necessary that the result of the calculation of each model be universal: Example if company A obtained a high result in the DDM model, company A should also have a high result in the two models (NPVS and EBITDA)
QUESTION 3. Use appropriate corporate valuation models which could be selected, outlining their advantages and disadvantages.
how they can be advantage for corporations, and investors when valuating and how can they be disadvantage for corporations and investors. (Give other advantages and disadvantages that will relate in the assignment)
3 CORPORATE VALUATIONS TO BE USE:
DIVIDEND DISCOUNT MODEL or DDM ( based on share price_.
NET ASSET VALUE PER SHARE or NAVPS
EBITDA VALUATION MODEL
DIVIDEND DISCOUNT MODEL : (figures must be on pence)
value of share =current dividend per share/ cost of capital – dividend growth
NET ASSET VALUE PER SHARE (NAVPS):
NAVPS= TOTAL ASETS – TOTAL LIABILITIES / OUTSTANDING SHARES
EBITDA (( you can use the common formula for calculation)
FOR source of figure information kindly use the latest financial statement or latest annual report of the two selected UK PLC (PLEASE KINDLY ATTACHED A SCREEN SHOT AND LINKS FOR CONFIRMATION.) if 2022 annual report is not available kindly use 2021 interim report or the audited financial statement of 2021
You can also use other reliable sources of information (PLEASE KINDLY ATTACHED A SCREEN SHOT AND LINKS FOR CONFIRMATION.)
INTRODUCTION AND CONCLUSION: 100 to 150 words