Fatima Fertilizer Company Limited: valuation and sensitivity analysis
Case overview / Abstract
This case concerns the valuation of a public listed company’s stock in Pakistan, using the Free Cash Flow to Firm valuation model. The primary purpose of this case is to give students an opportunity to identify the best discounted cash flow model to value stock for a given company. It requires computation of relevant cash flows and terminal values and enhances understanding of the valuation risk involved due to fluctuation in the key assumed variables. The case can be used to teach undergraduate finance courses that cover valuation models.
Keywords
Discounted cash flow valuation models, Fertilizer, Debt-free status, Dividend payout, Sensitivity analysis
Case Areas
Discounted Cash Flow, Firm Valuation Models, Public-listed Company, Terminal Values, Valuation Risk
Industry
Industrial Sector
Disciplines
Finance | Finance and Financial Management | Industrial Organization
Teaching Notes
No
Faculty / School
Faculty of Business Administration (FBA)
Department
Department of Finance
Was this content written or created while at IBA?
Yes
Source
Business Review
Length
8 pages
Citation/Publisher Attribution
Tauseef, S. (2017). Fatima fertilizer company limited: Valuation and sensitivity analysis. Business Review, 12(2), 101-108. Retrieved from https://doi.org/10.54784/1990-6587.1045
Recommended Citation
Tauseef, S. (2017). Fatima Fertilizer Company Limited: valuation and sensitivity analysis. Business Review https://doi.org/https://doi.org/10.54784/1990-6587.1045
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
