Entering Estimates into the FCFE Model

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Entering Estimates into the FCFE Model
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First, in the FTS Real Time Trader click on Menu item Parameters,

Then click on: List All to list all of the stock tickers in the dropdown below US Dollar. Select IBM
Next select from Parameter Type:

FCFE Model: 2-Stage
The input values can now be entered either manually or as a group from Excel. Once entered they are automatically stored on the FTS Server until you choose to delete or override with different inputs.
Tip: The Parameter menu item lets you store your current working set so that if you have multiple parameter sets you should keep other sets in your personal Excel workbook.
Entering Personal Values to Override FTS Default Values
Step 1: Click on List All above and then select IBM as the security from the dropdown
Step 2: Select the Model FCFE Model: 2 Stage

Step 3: For Parameter Field you can select all inputs depicted above and enter your personal override 90values. Your screen will appear as follows:

Finally be careful to Check the Checkbox "Use these values in my analytical support"
The main trading screen now appears as follows:

Clearly our first pass estimate is not consistent with the market and this may often happen with the FCFE approach. Your goal is to understand the underlying economics of the company you are valuing in terms of how from the firm side the three major decisions impact upon your assessments as well as how economy wide constraints impact upon your analysis. To check what is going on we will apply both sensitivity analysis as well observe what input values are implied from the current market.
First, consider what the analysts are currently saying about IBM: