I’m working on a data analytics writing question and need a sample draft to help me learn.This year has been a hot market for IPOs, and Airbnbwas a recent high profile one. Valuing a company is basically a big capital budgeting exercise. Instead of forecasting the cash flows from a single project, you forecast the cash flows for the whole company. Instead of calculating the NPV of a new product, you calculate the NPV of the cash flows of the whole company.
One complicating factor is that while a product will come to an end, in principle a company will not (we hope). So, we have to make an assumption at some point about how the cash flows of the company grow in the long-run (more on this below). The typical approach to valuing a company is to start by specifically forecasting the cash flows for the next 5 to 10 years and then make a simplifying assumption beyond that.
Requirements: less than 2 pages singe spaced.