Assessment Task
Roosters Diversified Fund asks your group to use discounted cash flow analysis to value CSL Limited
and prepare another analyst report for them to compare with your group’s relative valuation of CSL
Limited. This analyst report must provide a buy, sell or hold recommendation in the first paragraph
followed by a brief summary of how this recommendation was reached using discounted cash flow
analysis. The report should include graphs and tables; data from CSL Limited (CSL) financial
statements data and current economic data. The Part ll analyst report must be writen in a form that
Roosters Diversified Fund can easily read and include:
A brief explanation in your own words of the three main steps you used to estimate the
a.
intrinsic value of ordinary shares in CSL Limited (CSL). This explanation must report on any
assumptions and or dificulties that your group experienced in each of the three steps. (Worth 6
marks)
b
A brief explanation in your own words of how your group estimated the free cash flow for the
current financial year, 2022 to 2023.(Worth 4 marks)
Explanations in your own words of how your group estimated their discount rates, growth
rates, terminal value and share price.(Worth 4 marks)
d
A comparison in your own words of your group’s recommendations using the relative valuation
approach and discounted cash flow approach.(Worth 1 mark)
c
