FNCE30011 Essentials of Corporate Valuation

ASSIGNMENT
SEMESTER 1, 2020

INSTRUCTIONS

This assignment may be undertaken individually or in groups of two or three students. The choice is yours.

This assignment counts 25% to the overall mark in this subject. Where an assignment is submitted by a group, each student within
that group will receive the same mark being that which is given to the assignment. Only one assignment is required to be submitted
for each group

In general, students are responsible for forming their own groups but, given current restrictions, there are likely to be some students
who would like to be in a group but are unable to attend campus to find other group members. If this applies to you then please send
an email to me at handleyj@unimelb.edu.au over the next few days but in any event no later than 9:00 am on Saturday 16 May 2020
using your University of Melbourne email address and remember to include your student ID number. I will then randomly allocate
you to a group and advise all group members by email.

The assignment should be submitted using the Assignments link on the class website on Canvas no later than 11:59 pm on
Thursday 28 May 2020.

Your assignment must be submitted as a pdf document and …

• be in landscape orientation
• on the first page (slide), include the presentation title and the name and student ID number of every member of your group
• contain no more than ten pages (slides) in total – this corresponds to the 2000-words equivalent limit
Recent versions of Microsoft Office allow you to save a word, excel or powerpoint document as a pdf document. Alternatively, you
can download an app for your phone to scan your answers and save them as a pdf document. There are various apps available
including Evernote Scannable or iScanner in the App Store for iOS phones and Genius Scan or Scan Smarter in the Play Store for
Android phones.

Your assignment will be graded not only on the merits of your valuation but also on the entire presentation including the clarity and
creativity of how you communicate it in a professional setting.

REQUIRED

Assume you have just landed a job as a junior equity analyst at a large U.S. pension fund.

Your boss has asked you to undertake a valuation of Netflix, Inc. and prepare a presentation outlining your work.

You have already gathered some information (set out below) – and in using this and any other information you decide is relevant –
will ensure that all sources are appropriately referenced or attributed.

You are keen to impress the boss and realise that you will need to clearly explain not just what you have done but why you have done
it.

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FROM THE NETFLIX CORPORATE WEBSITE …
There is a heap of information available from: https://www.netflixinvestor.com/ir-overview/profile/default.aspx

For example, the following extract is taken from the 2019 Netflix annual report (called a Form 10-K in the U.S.) and which is also
posted on the class website

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FROM THE WALL STREET JOURNAL …

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https://www.wsj.com/market-data/quotes/NFLX?mod=quote_search

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https://www.wsj.com/market-data/stocks/peyields

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Stock Price History (up to 12 May 2020)

The following files are available from the class website …

• NFLX-HistoricalPrices.csv

• SP500-HistoricalPrices.csv

Source: https://quotes.wsj.com