Project Task a: Valuation and Sensitivity Analysis

Task A I choose Qantas Airways Limited (ASX code: QAN.AX) as the tar land company which is listed on the Australian Stock r onlyy (ASX).Qantas Airways is principally engaged in providing transport services at both international and domestic level. It is also engaged in the provision of time definite freight services. Qantas focuses on merchandising of international and domestic holiday tours, and associated support activities including information technology, catering, backcloth handling, and engineering and maintenance. It operates its business through six divisions namely Qantas, Qantas holidays, Jetstar and Qantas passage catering, Qantas freight and Qantas frequent player. In the section 1, the report deals with the valuation of the company. I will estimate the value of QANs on a per share basis. According to the diachronic prices of the company and all ordinaries, I will calculate QANs beta by calculating a regression on the monthly returns from QAN on the market returns in the belong 5 years. And according to the QANs financial selective information, I will rebuild its historical funds Flows. In addition, I gather relevant financial data and other non-financial information to estimate future FCF for the next 5 years.

By terminateing Future Cash Flows (FCF) using a discount rate given by QANs Weighted average out Cost of Capital (WACC) I will compute the assoil Present Value (NPV) of the company. So, we are able to compare our calculate NPV per share with the market share price and analyse the factors which induce the deviations. In the second section, I will conduct a sensitivity analysis to assess the sensitivity of the NPV on changes of the assumptions. Finally, resume and give a recommendation regarding the assessment of the company. Section 1: Valuation 1. Download data and Calculate Return Collect the historical prices of the company and all ordinaries, Calculate the monthly returns on QANs share and the all ordinary index over the last 5 years by using the following... If you want to get a full essay, order it on our website: Ordercustompaper.com

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