Pretend you are an investment banker. Your client is a computer company (PC manufacturer), similar to Dell or HP (even the same product mix). Your client’s CFO has sent you the latest company projections of the financial statements and has asked you to conduct a valuation. (The CFO has already projected the numbers, all you have to do now is value the company.)
q1) Please conduct a DCF valuation
q2) Please conduct a Comps Valuation .(EV/EBITDA and P/E are the two multiples you should use for the comps valuation).
Your client is a private company.
Your firm’s technical standards committee mandates that you use 7.0% as the equity risk premium.
I will upload the financial projections for this company. Thank You.