Company Valuation (SABMiller)

Our objective was to make a fair estimate of the market value of 100.00% of SABMiller Plc as part of our course, Company Valuation. SABMiller is one of the world's leading brewers with more than 200 beer brands and some 70,000 employees in over 75 countries across Africa, Asia, Australia, Europe, North America and South America. Two separate methods were utilized for the valuation of SABMiller plc. First method utilized is discounted cash flow (DCF), taking the projected cash flows over the future years, growing them as perpetuity after 2018, and then discounting the amount back to present value using weighted average cost of capital (WACC). The second method used relative valuation, which involved taking similar companies and comparing the ratio of key measures, such as revenues and EBITDA.