Saito Solar—Discounted Cash Flow Valuation Case Solution
The company experienced steady sales decline recently, primarily due to intense competition from low cost solar panel makers from China. The risk of radiation from the nuclear plant explosions as a result of fatal quake in 2011 prompted Japan to search for alternative energy. This tariff was nearly twice as big of three times of that in China as well as that in Germany. This motivator was forecast to generate solar energy that would rank Japan among the biggest in the world in solar capability. The partners of Saito Solar needed to learn how much the company was worth and were excited about the investment bank’s solicitation. The cash flow projections including the benefit of the Japanese solar sector were provided. Moreover, a discourse over the valuation along with the approach of discounted cash flow was conducted by the associates.Therefore, it is the ideal instance to introduce beginner finance pupils the appropriate and common way to value a company using DCF.
This is just an excerpt. This case is about Finance
Publication Date: 12/01/2013
