Valuation Model for Alimentation Couche Tard

The second assignment is to create a valuation model for Alimentation Couche Tard with a 12-month target for the price of the Class B shares. The project deliverable is a fully documented valuation model, including a DCF valuation and comparables analysis. Develop your narrative for this company. (Give me your story of how you see your company evolving over time, given what you know about it, its market and the competition) Tie your narrative to key numbers that you will be using in your valuation.

Your model will include a separate three-page summary on the financial position of the firm, suitable for presentation to senior management. (12 pt. Times Roman, single spaced. No more than three pages, not including appendices.)

Submit one electronic copy of your model and summary to Turnitin via D2L. It is due at 6 pm on July 8^th. Late penalty is 20% per day.

Project Requirements

Intrinsic Valuation

Value the equity in Alimentation Couche Tard using a discounted cash flow model. The choice of inputs is up to you. In a separate appendix, you will list all of the key input decision and your justification. As part of the model, you must prepare a bottom up beta calculation, but it is up to you whether you ultimately choose to use it.

Relative Valuation

Prepare a list of “comparable” companies, using criteria that you think are appropriate

Choose a multiple that you will use in comparing firms across the group. I expect that different people will choose different comparable companies and different ratios for the comparison. Justify your choices. Evaluate your company against the comparable firms using the multiple that you have chosen for your valuation.

Sensitivity Analysis

Since the product of this analysis will depend critically on the assumptions made, the spreadsheet will be appropriately documented and include interactive sensitivity analysis (scroll bars and interactive charts to allow for manipulation of key inputs).

Final Value Estimate and Recommendation

Your valuation should have a narrative. Your analysis should support the story you are trying to tell. You are preparing a brief three page valuation memo for ACT. It should be suitable for senior management and should answer the question “Is Alimentation Couche Tard overvalued, undervalued or correctly valued at the current price?”

Additional Requirements

To facilitate marking this term project, please complete the following table and attach it as one of the appendices to your report. “Location” tells me where to find it in your model. “Comment” describes the choices you made and how and why you calculated them. why you made them. Be brief but complete.