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Business Valuation

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I do need a financial valuation for the Cheesecake Factory. This is a valuation analysis of the Cheesecake Factory.

I do need the:
DCF = discount cash flow
FCF= free cash flow generated from 2010 until 2015
WACC = weight average cost capital
TV = Terminal value on year 2015
The growth rate of Cheesecake factory

References for the project:
http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=CAKE
http://www.reuters.com/finance/stocks/overview?symbol=CAKE.O
http://finance.yahoo.com/q?s=cake
http://moneycentral.msn.com/detail/stock_quote?Symbol=cake&getquote=Get+Quote

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https://brainmass.com/business/weighted-average-cost-of-capital/business-valuation-299909

Solution Preview

See attached file.

I have used CapitalIQ to get all the financial data that I need. I subscribe to that and it gives me all the data that I need ...

Solution Summary

The solution provides a very detailed explanation and business valuation. The attached excel file not only compares Cheesecake Factory with its peers but also lists out very detailed steps on how to calculate beta, un-lever the beta and re-lever the beta. Detailed cash flows are determined. The attached Excel can be used as a template for future valuation assignments. An excellent response. The OTA has used CapitalIQ to pull all relevant company information for Cheesecake Factory.

$2.19
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This is a group discussion board

Problem:

Benjamin O'Henry has owned and operated O'Henry's Data Services since its beginning ten years ago. From all appearances, the business has prospered. In the past few years, you have become friends with O'Henry and his wife. Recently, O'Henry mentioned that he has lost his zest for the business and would consider selling it for the right price. You are interested in buying this business, and you obtain its most recent monthly unadjusted trial balance which follows:

O'Henry's Data Services Unadjusted Trial Balance November 30, 20XX
Cash.................................... $9,700
Accounts receivable........................... 7,900
Prepaid expenses............ 2,600
Furniture, fixtures, & equipment 151,300
Accumulated depreciation $15,600
Accounts payable............ 3,800
Salary payable..................
Unearned service revenue 6,700
Benjamin O'Henry, capital 137,400
Benjamin O'Henry, withdrawals 2,000
Service revenue............ 14,300
Rent expense...............
Salary expense............ 3,400
Utilities expense......... 900
Depreciation expense
Supplies expense......
Total................................................. $177,800 $177,800

Revenues and expenses vary little from month to month, and November is a typical month. Your investigation reveals that the unadjusted trial balance does not include the effects of monthly revenues of $2,100 and monthly expenses totaling $2,750. If you were to buy O'Henry's Data Services, you would hire a manager who would require a monthly salary of $3,000.

The most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price. The least O'Henry will take for the business is his ending capital. Compute this amount. Under these conditions, how much should you offer O'Henry? Give your reason.

Note: I hope somebody can help our group for this issue. Thank You.

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