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    Yepuru Chaithanya
    This document provides an overview of equity valuation techniques and applies the free cash flow to equity valuation model to determine the current value of Infosys. It first discusses fundamental analysis, technical analysis, and different equity valuation methods. It then profiles Infosys and reviews literature on discounted cash flow valuation and the weighted average cost of capital calculation. The document presents the objectives of valuing Infosys using the free cash flow to equity model. It calculates values such as the WACC, depreciation, net income, and cash flows. Finally, it determines the current total value of Infosys by projecting and discounting its free cash flows to equity.

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    List of Contents

    Uploaded by

    Yepuru Chaithanya
    80 views4 pages
    This document provides an overview of equity valuation techniques and applies the free cash flow to equity valuation model to determine the current value of Infosys. It first discusses fundamental analysis, technical analysis, and different equity valuation methods. It then profiles Infosys and reviews literature on discounted cash flow valuation and the weighted average cost of capital calculation. The document presents the objectives of valuing Infosys using the free cash flow to equity model. It calculates values such as the WACC, depreciation, net income, and cash flows. Finally, it determines the current total value of Infosys by projecting and discounting its free cash flows to equity.

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    This document provides an overview of equity valuation techniques and applies the free cash flow to equity valuation model to determine the current value of Infosys. It first discusses fundamental analysis, technical analysis, and different equity valuation methods. It then profiles Infosys and reviews literature on discounted cash flow valuation and the weighted average cost of capital calculation. The document presents the objectives of valuing Infosys using the free cash flow to equity model. It calculates values such as the WACC, depreciation, net income, and cash flows. Finally, it determines the current total value of Infosys by projecting and discounting its free cash flows to equity.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    80 views4 pages

    List of Contents

    Uploaded by

    Yepuru Chaithanya
    This document provides an overview of equity valuation techniques and applies the free cash flow to equity valuation model to determine the current value of Infosys. It first discusses fundamental analysis, technical analysis, and different equity valuation methods. It then profiles Infosys and reviews literature on discounted cash flow valuation and the weighted average cost of capital calculation. The document presents the objectives of valuing Infosys using the free cash flow to equity model. It calculates values such as the WACC, depreciation, net income, and cash flows. Finally, it determines the current total value of Infosys by projecting and discounting its free cash flows to equity.

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    ABSTRACT

    Equity valuation is conducted to measure the value of a company given its current assets and
    position in the market. This project deals with the application of free cash flow to equity
    valuation model. This project also combines the free cash flow to equity model with the supernormal growth model to determine the current value of Infosys. In addition to computing free
    cash flow to equity, the sustainable growth rate, the long term growth rate and beta, the cost of
    equity and the current total value of Infosys are also calculated.

    LIST OF CONTENTS

    Page No
    Chapter 1: Introduction to equity valuation
    1.1

    01

    Fundamental Analysis

    01

    1.1.1

    01

    Economy Analysis

    1.1.2 Industry Analysis

    02

    1.1.3 Company Analysis

    02

    1.2

    Technical Analysis

    02

    1.3

    About value

    03

    1.4

    Determinants of Intrinsic Value

    03

    1.5

    Techniques of fundamental equity valuation

    04

    1.6

    Free cash flow to equity (FCFE) Model

    04

    1.7

    Weighted Average Cost of Capital(WACC)

    Chapter 2: Company Profile

    08

    10

    2.1

    Establishment & Network

    10

    2.2

    Sharekhan Operations

    10

    2.3

    Services

    11

    2.4

    Awards & Recognition for share khan

    11

    Chapter 3: Literature Review

    12

    3.1

    Equity valuation practices

    12

    3.2

    Discounted Cash flow valuation

    14

    3.3

    Weighted Average Cost of Capital

    14

    3.3.1

    Cost of equity

    15

    3.3.2

    Risk free rate

    16

    3.3.3

    Equity Beta

    16

    3.3.4

    Market risk premium

    17

    3.4

    Weights of Debt & Equity

    17

    3.5

    Free Cash Flow to Equity (FCFE) Model

    18

    3.6

    FCFE valuation models

    19

    3.6.1 Constant growth FCFE Model

    19

    3.6.2 Two stage FCFE Model

    20

    Chapter 4: Objectives of the Study


    4.1

    Primary Objectives

    21
    21

    4.1.1 Secondary Objectives

    21

    4.2

    Need and Importance of the Study

    21

    4.3

    Scope of Study

    21

    4.4

    Source of data

    22

    4.5

    Target Audience

    22

    4.6

    Limitations of the study

    22

    Chapter 5: Data Analysis and Interpretation

    23

    5.1

    Computation of WACC of Infosys

    23

    5.2

    Statement showing Depreciation & Net income & CFAT

    24

    5.3

    Statement showing changes in Working Capital

    25

    5.4

    FCFE calculations

    25

    5.5

    Calculations of Current value of Infosys

    26

    5.6

    Calculations of Projected FCFE, Present value of FCFE

    27

    Chapter 6: Conclusion

    29

    Chapter 7: Suggestions

    30

    Chapter 8: Bibliography

    30

    Annexure

    31

    LIST OF TABLES

    Page No
    5.1

    variance of Depreciation, Net Income & Cash Flows after Tax over years

    24

    5.2

    changes in Working Capital

    25

    5.3

    year-wise Free Cash Flows to Equity (FCFE)

    25

    5.4

    projected FCFE, present value of projected FCFE

    27

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