The company had experienced steady sales decline lately, due mostly to intense competition from low-cost solar panel makers from China. Nevertheless, in 2012, the solar business in Japan received new signals of life. This tariff was almost two times as big of that in Germany and three times of that in China.
This motivator was forecast to produce solar energy that will rate Japan as one of the largest in the world in solar capability. The associates of Saito Solar desired to figure out how much the business was worth and were excited regarding the investment bank's solicitation.
The cash flow projections including the positive outlook of the Japanese solar sector were supplied. The partners discussed valuation using discounted cash flow (DCF) approach, so it's the ideal case to introduce beginner finance pupils the appropriate and common way to value a firm using DCF.
Saito Solar Discounted Cash Flow Valuation case study solution
PUBLICATION DATE: December 01, 2013 PRODUCT #: TB0357-HCB-ENG
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