Prospective Analysis and Application

Based on the same company chosen for the group and first individual assignment, produce an individual professional report on the prospective analysis of the company. Forecast the future financial performance of your company for the next five years and beyond. Use four valuation models, i.e. Dividend Discount Model, Residual Income Model, Residual Operating Income Model and Free Cash Flow Model, to produce an estimate of the firm’s share value, and compare to its current stock price. Perform sensitivity analysis on key forecasting assumptions using only Residual Operating Income Model and discuss the results. Based on sensitivity analysis and as a potential management consultant to your chosen firm, provide a discussion as to the possible opportunities for improvement, and potential challenges for the firm. Provide specific and reasonable remedies for these concerns.