Date of Award

Fall 12-12-2018

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance

Department

Graduate Studies

Committee Chair

Eduardo Pablo

Abstract

The Financial Analysis and Valuation of Nuvera Communications, Inc. uses the discounted free cash flow at the weighted average cost of capital model to forecast the intrinsic value for Nuvera Communications. Nuvera Communications competes in a highly competitive, innovative, and volatile industry which may explain why earnings and price per share may fluctuate from year to year for some companies. In the PDF provided, the model found the intrinsic value per share of Nuvera was below that of the current market price per share, suggesting a current over valuation of Nuvera's stock. This conclusion was supported by using the Relative Valuation Method to price the intrinsic value of a competitors stock. Nuvera's stock may be overvalued due to the recent completion of an acquisition and a current volatile market that can lead investors into emotional trading. It would be better to sell Nuvera's stock today, receive a higher value for it, and buy the stock back in the future when the market price adjusts to the forecasted intrinsic value. In addition, with the communications industry being an ever-changing one, effects on earnings can vary noticeably from year to year.

Included in

Accounting Commons

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