Valuation of Selected Company

Abstract

The focus of this thesis is the valuation analysis of the selected company in the automotive industry. The goal of the thesis is to estimate the probability distribution of the selected company's market value in 2021. We decide to use the two-stage DCF method to estimate the selected company's expected value. The discounted cash flow model is a comprehensive tool for evaluating the value of a company. We use the historical data from 2016 to 2020 and predict the development of the selected company in the electric vehicle industry in 2021-2025. Then, we can apply common–size analysis and financial ratio analysis to analyze the selected company's financial situation. The next step is sales prediction. After applying the ordinary least squares method (OLS) to regress the sales, we use Monte Carlo simulation to simulate the independent variables. Based on the sales we create the financial plan for 2021-2025 and valuate the company.