You are an analyst reporting to Jennifer Jerabek, CFO of Teuer Furniture. As noted in the case, several Teuer’s investors have taken issue with the FCF DCF analysis done previously. They believe that DCF analysis is unreliable since it requires dozens or hundreds of assumptions about the future of the company. Jerbek (and you) have been instructed to prepare a valuation that does not depend on assumptions about future growth, profitability, capital investment or require discretion by the finance team. She has asked you to value the company using the market multiples approach. Your analysis should include a discussion about whether your analysis is free of any assumptions about the future of the company or based on any discretionary choices on your part. Detail your analysis in a one-page report. BACKGROUND ATTACHED CASE ATTACHED
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