Corporate Finance Assignment PDF

Running Head: Corporate Finance Assignment
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Project Report: Corporate Finance Assignment

Corporate Finance Assignment
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Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
EVA analysis....................................................................................................................3
TSR analysis.....................................................................................................................4
Valuation analysis.............................................................................................................5
Net asset value..............................................................................................................5
Comparable ratios.........................................................................................................5
Conclusion........................................................................................................................6
References.........................................................................................................................7

Corporate Finance Assignment
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Company overview:
Walt Disney is an American diversified multinational company which operates its
operations under mass media and entertainment industry. It is the largest independent media
organization in terms of the revenue generation. The main products of the company are cable
television, publishing, video games, films, music, radio, web portals, amusement park and
broadcasting (Home, 2018). Company also offers the services of licensing in the American
market and at international market.
EVA analysis:
Eva analysis is a measurement of financial performance of a company which is based
on the residual wealth and it is calculated through deducting the cost of capital from the total
operating profit, taxes are also adjusted in the calculations on the basis of cash (Kaplan and
Atkinson, 2015). In case of Walt Disney co, it has been found that the below are the
economic value added of the company of last few years:
Calculation of Economic Value Added
Particulars 2018 2017 2016 2015 2014
Operating profit
Amount in USD
'million 11400 13171 14202 13775 14804
Less:
Tax @ 35% 3990 4610 4971 4821 5181
Net Operating Profit
After Tax (A) 7410 8561 9231 8954 9623
WACC (B) 2.88% 2.88% 2.88% 2.88% 2.88%
Invested Capital (C ) 52,832 45,004 47,323 48,655 48,178
D= BXC 1521.56 1296.12 1362.90 1401.26 1387.53
Economic Value
Added (A-D) 5888.44 7265.03 7868.40 7552.49 8235.07
(Yahoo Finance, 2018)
It explains that the economic value added level of the business has been lowered in
the year of 2018. However, the economic value added figures of the company lead to the
conclusion that the performance of the company is quite great because of the internal
management of the business. These strategies and management process would help the
business to manage overall position in the marketplace.