Business and Management Harvard

Financial Modelling

The company is Next plc.You have to provide the following information.
Industry and Company Analysis
1. Provide a summary of the companys business activities, and an analysis of its industry. Review the competitive landscape of this industry and examine the macro environmental factors that could affect the industrys performance. 
2. Undertake a financial analysis and evaluation of the historical performance over the past five years.
Modelling and Valuation
3. Develop a pro-forma forecast of the chosen company as a basis for estimating its intrinsic price. Your spreadsheet should include:
a. a set of forecasted financial statements based on a pro-forma (latest financial year),
b. key assumptions and drivers that influence each of the components of the forecasted balance sheet, income statement and cash flow statements, c. key parameters to be used for valuation, and d. the valuation model (e.g. Discounted cash flow, Market based valuation etc).
4. Explain and justify the reasons underlying the assumptions and forecasts you made in your valuation model
5. Conduct scenario and sensitivity analyses [i.e. how future business decisions and strategies can change the valuation outcome. Also how changes in the specific environment of the business such as response to competitive threats, or preparing for different possible outcomes for the wider economy (boom or return to recession) can change the valuation outcome]