This past semester in my “Valuations and Financial Statement Analysis” class, I had the pleasure of learning from Professor David Moore PhD about creating both DCF and Relative Valuation Models. My term project explored valuing Molson Coors Beverage Co., most prominently known for their flagship Coors Light beer. After running a complete analysis of the alcoholic beverage industry, I found that Molson was a strong “Buy” for value-oriented investors.
In this same class, we ran both DCF and Relative Valuations for Rivian as part of learning the fundamentals to completing these models. Different from Molson Coors, Rivian is in the early stages of their development, meaning that my forecast window needed to extend further in order to reach their projected stable growth. With my DCF valuation, I ran a Black-Scholes model to obtain the value of all outstanding options per their most recent 10-K. The EV space is ever-growing and expanding, justifying my use for an elevated growth rate and a lower discount rate (WACC). Like my Molson Coors recommendation, I found that Rivian was a “Buy” recommendation to investors, mainly due to their EV Utility Vans potential and the expansion of their fleet with cost effective models.
George Tupy 