This is a case from the Financial Modeling World Cup 2021, Stage 5 (May 21-24) competition. This case requires you to calculate the net worth of a business owner.

Case description:

To create a monthly financial model for the year 2020 that can calculate the personal net worth and its changes over time of John Smith, the founder, and CEO of PowerUp Builders. Furthermore, to value Mr. Smith’s net worth at the end of 2019, the end of 2020, and any month during the year using the valuation principles provided.

The objective of this case is to create a monthly model for the year 2020 that can show John Smith’s personal net worth and its changes over time. To achieve this objective, there are several factors to consider. John Smith owns various assets, such as his own house, summer house, an apartment he rents out, a portfolio of stocks, two cars, and some cash. Additionally, he owns 100% of his company’s shares, which is his primary asset. His assets are connected to outstanding mortgages, and there are no other types of loans or liabilities. The valuation principles, such as EV/EBITDA multiple of 8.5x for the company value, rent rates, market cap rates for the properties, mortgages, and stock prices, should be used to value his net worth.

The downloadable file consists of the following:
-Task: Excel file with given case assumptions; PDF file with Case Materials; PDF file with Questions
-Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold

This model awarded 350 points, while the whole 2h Stage allowed to earn 1,000 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages at https://fmworldcup.com/shop/