Investment Banking Assignment
You have recently joined the advisory division in a major investment bank and as the rookie junior analyst on the team you have been asked to take a first go in assessing the value of company your bank is looking at as a possible candidate for an acquisition.
Your boss has recently fallen in love with the concept of meme stocks and the Redditǯs WallStreetBets discussion board. A company that has captured his interest is Nikola Corporation (NKLA). According to him, because gravity–powered vehicles (link) are revolutionary, this company could be an interesting target.
Your job is to apply comparable companies and DCF valuation to this target and provide:
A reasonable valuation range
A final investment advice (i.e. whether the company is, at the current trading price, a
good acquisition target). By convention we will consider “current trading price” $7.90 as of Feb 25.
