How can this quesiton be approached? Thanks!
(editiert)
How can this quesiton be approached? Thanks!
(editiert)
Hi,
In addition to what Bruno said, think about other ways to estimate the value:
Best
Hey anonymous,
Basically, this is just a valuation question.
My suggestion to crack is just to find all the streams of profits (both revenues and costs) arising from the golf course in one standard year (check for any particular flutuations year on year to guarantee you use a steady state in your final valuation; if it's not, control for it).
Additionally, brainstorm on some additional sources of revenues/profits that might be possible to do with the course that are not being exploited in today's activity/previous numbers forecast.
Once you have all of your robust estimates, you just need to discount all the future expected profits into the present with the NPV (Net Present Value, ask for the appropriate discount factor!).
Best
Bruno
PS: I'm assuming the golf course already exists and it's already being explored by some company; if not, the major change is that you need to brainstorm from the beggining on what are the major buckets of potential revenues (renting it for stand alone practises, tournments, classes, support bar, etc) and costs (staff, equipment, maintenance of the place, etc)
(editiert)
Hi Anonymous,
In general, there are three ways you can use to assess the value of something:
Note: You have to subtract the debt, if present, at the end of the estimation. Forgetting debt is one of the most common mistakes done by candidates.
You can find more on the DCF at the following link:
https://www.preplounge.com/en/consulting-forum/case-net-present-value-calculations-325
Best,
Francesco