Liston Mechanics Corp Case Solution

Case Solution

Surveys, through a fairly basic and direct circumstance, the different strategies for valuation- - free income, weighted normal expense of capital, value income, balanced present worth, products, and so on.

Excel Calculations

Cost of Capital Calculations

DCF Valuation Method

Multiples Valuation Method

Questions Covered

Prepare a five-year forecast of the Free Cash Flows for LMC.

Use DCF to value the company based on your five-year forecasts plus terminal value. 

Compare your DCF value to two or more multiples approach based on such multiples as earnings, EBIT, EBITDA, Sales, etc.