Refer to attached example of DCF format and copy its structure exactly as is. The company is Addus HomeCare Corporation
Basic Information:
Addus HomeCare Corp. provides a variety of medical and social services to the elderly and disabled both in their own facilities and in home care. Some of these services are therapy, nursing, adult day care, and assistance in day to day tasks.
Assignment:
Prepare the DCF valuation for $ADUS (Addus HomeCare Corp).
Provide some rationale for your assumptions regarding projected sales growth and projected EBIT margins. This rationale should be driven by your company research and industry research.
Adjust your WACC, and, potentially, growth rates based on information from the Fed Funds rate, the yield curve, and the Federal Reserve itself. Given the current environment, you may want to focus on inflation. You can project different scenarios, one optimistic and one pessimistic where the current model is the baseline.
You should have a small write-up justifying your views and the new target price, but you do not need to submit a new DCF model.
You may want to write up a discussion section that focuses on these particular rates and how it will affect both your company and industry.
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