Harvard Business Review 의 Laura Martin 케이스 분석

소개

Harvard Business Review의 Laura Martin의 케이스 문제에 대해서 풀어본 레포트입니다. 레포트 등급 상위권 등급을 받았습니다. 과제 수행하는데 있어 큰 도움이 될 것입니다.

목차

1. (10%) Consider the multiples analysis developed in Exhibits 2, 5, & 6. i) Why do you think that the multiple approach is so popular?; ii) Why do you think you may sometimes use EBIDTA multiples instead of EBIT?; iii) What are the tradeoffs in using multiples versus the DCF analysis?; iv) How is Martin’s regression analysis different from the traditional multiple approach?; and v) Based on the regression results in Exhibit 5, do you agree with Martin’s conclusion that the projected increase in ROIC by 0.8% should increase the multiple for Cox? Why or why not?

2. (20 %) Consider the DCF analysis presented in Exhibit 7. i) Are there any assumptions you find unrealistic or problematic?; and ii) What is the implicit growth rate of free cash flows when the EBITDA multiple of 13 is used to calculate the terminal value? How would the DCF value change if the growth rate is assumed to be 3%, instead of the implicit growth rate you calculated. Use the Excel Help file to answer this question..

3. (20%) i) In what ways might the “stealth” tier be incorporated into the DCF analysis and multiples analysis?; ii) In what way is the stealth tier like a call option?; and iii) How good an analogy is the “stealth tier” to a real option? Where does the analogy work? Where doesn’t it work? Answer these questions in iii) for each factor that affects option values.

본문내용

1. (10%) Consider the multiples analysis developed in Exhibits 2, 5, & 6. i) Why do you think that the multiple approach is so popular?; ii) Why do you think you may sometimes use EBIDTA multiples instead of EBIT?; iii) What are the tradeoffs in using multiples versus the DCF analysis?; iv) How is Martin’s regression analysis different from the traditional multiple approach?; and v) Based on the regression results in Exhibit 5, do you agree with Martin’s conclusion that the projected increase in ROIC by 0.8% should increase the multiple for Cox? Why or why not?
i) Why do you think that the multiple approach is so popular?

It’s because it is simple and easy to calculate it. Another reason is that the information can be obtained easily with cheap cost (sometimes no cost in Internet). So the multiple approach is popular to the investors.

<중 략>

As we remember long call option’s definition, the stealth tier is very similar to call option. The company has a right to buy but they didn’t obligation. If the value exceeds the cost of portion of the stealth tier then The company accept . But if the cost exceeds it then the company will not use this option and expire it then the company accept the premium price. So This is very similar logic of Call Option.

iii) How good an analogy is the “stealth tier” to a real option? Where does the analogy work? Where doesn’t it work? Answer these questions in iii) for each factor that affects option values.

참고자료

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