Read the case “Equity Valuation: The Walt Disney Company”
This case applies the Free Cash Flow to the Firm (FCFF) valuation method to estimate the value of The Walt Disney Company using historical financial data from 2001 to 2010.
Part 1: Written Summary (1 page)
Prepare a one-page summary explaining the steps used in the case to determine the value of the company.
For each step, clearly describe:
- The purpose of the step
- The formula(s) used
- Any assumptions made
- The information/data required
- The source of the information used in the case
Finally, assess whether the FCFE model is appropriate for valuing this firm.
Part 2: Excel Valuation Model
Create an Excel spreadsheet that shows all calculations used to estimate the firm value.
Requirements:
- Begin with the historical financial data provided in the case.
- Show all intermediate calculations clearly.
- Any calculated value must include the corresponding Excel formula so the TA can verify your work.
- Due to rounding differences, your final firm value may vary slightly from the value reported in the case.
Submission Instructions
Submit the following files separately through Canvas:
- Your Excel valuation model (.xlsx)
- Your one-page written summary (.doc, .docx, or .pdf)