Term Project: Instructions
金融project代写 The theme of this project is the valuation of high-growth startups, with a particular focus on major unicorns based in China.
The theme of this project is the valuation of high-growth startups, with a particular focus on major unicorns based in China. The following are some issues to consider in the valuation analysis.
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Themes 金融project代写
To be brief, the analysis in this project centers around two themes: (i) what does the company do? (ii) how much is it worth?1
Conceptually, you can think of this project as a presentation for the investment committee of a VCfirm. That is to say, you can think of yourselves as members of the investment team and your audience as the VC partners.
You may want to introduce the company’s management team, their main products or services, and the business environment of the industry where it operates.
Based on this information, you may proceed to size the company’s addressable market and analyze its competitive position in its industry.
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Valuation Methods
Both DCF and valuation based on comparables/multiples are required in this project.
DCF should be your benchmark valuation tool. The comparables/multiples can be applied to (i) determine the continuing value when the company matures, or (ii) triangulate the results from your
DCF analysis.
Choose the valuation multiple that best suits the purpose of your study. The multiples can be based on either financial or operational information.
Remember to perform the sensitivity analysis, as always.
1 This refers to the total valuation of the company. You do not have to conduct partial valuation analysis in this project.
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Corporate Value Drivers 金融project代写
Most of your time and effort should be spent on forecasting the corporate value drivers (particularly growth, return on invested capital, profit margin). To simplify the analysis, you can assume the cost of capital is 16%.
You may want to consider the company’s pricing strategy, value proposition of its products and services, potential size of its target market, potential market share and how it can be achieved over
time, its cost breakdown (e.g., production costs, R&D, marketing, SG&A) and how it will change over time, its distribution strategy and suppliers, its past financing history and current financial
health, so on and so forth.
