Valuation of Zipcar

VALUATION OF ZIPCAR

Using Discounted Cash Flow Model

ICMA March 4, 2013 Authored by: Narender Chauhan

Contents

THE COMPANY ................................................................................................................ 2 DATA USED .................................................................................................................... 2 MODEL USED AND ITS ASSUMPTIONS. ...................................................................................... 2 1) SALES GROWTH..................................................................................................... 2 2) COST OF GOODS SOLD(COGS)/SALES ......................................................................... 2 3) SGA/SALES .......................................................................................................... 3 4) RISK-FREE RATE ..................................................................................................... 3 5) TAX RATE ............................................................................................................ 3 6) BETA .................................................................................................................. 3 7) COST OF DEBT ...................................................................................................... 3 8) COST OF EQUITY ................................................................................................... 3 9) MARKET RISK PREMIUM ........................................................................................... 3 10) WACC ............................................................................................................... 4 RESULTS ........................................................................................................................ 4 CONCLUSION.................................................................................................................. 5 BIBLIOGRAPHY...