# Nordvale Capital Partners — Assignment: DCF valuation of Laurentide Composites Inc.

**From:** Geneviève Marchand, Vice-President, Industrials
**To:** Associate, Industrials coverage
**Date:** 12 January 2026

## Context

We are pitching the board of Laurentide Composites Inc. ("LCI"), a TSX-listed manufacturer of engineered composite panels
(FY2025 revenue CAD 572 million). I need a base-case discounted cash-flow valuation of LCI's equity as at
31 December 2025 and a short investment memorandum that I can take into the partners' meeting. The data room is in `inputs/`.

## Inputs (`inputs/`)

| File | Content |
|---|---|
| `financial_statements.xlsx` | Audited income statement, balance sheet and cash-flow statement, FY2021–FY2025, CAD thousands |
| `annual_report_excerpt_2025.pdf` | MD&A excerpt: business overview, segment information, capex guidance, Note 14 (leases), Note 18 (provisions and contingencies) |
| `market_data.xlsx` | Risk-free rate, equity risk premium, tax rate, LCI cost of debt, share price and share count, net debt components, six comparable companies (levered beta, D/E, EV/EBITDA, P/E) |
| `assignment_memo.docx` | My memorandum fixing every projection and discount-rate assumption for the base case — follow it exactly |
| `broker_note.pdf` | A recent sell-side initiation on LCI, for market context and the comparables discussion |

If the deal portal is available to you (credentials in `portal/`), the same documents are in its document library, the comparables
are in the "comparables" records table, and the `valuation_summary` form is where the headline numbers are submitted.

## What I need in `out/`

1. **`dcf_model.xlsx`** — the model, with five sheets named exactly `Assumptions`, `Projections`, `WACC`, `Valuation` and
   `Sensitivity`. Live formulas throughout (projections, discount factors, terminal value, bridge to equity, sensitivity table):
   a reviewer must be able to trace every number back to an input. Values must be visible when the file is opened. Clearly
   label the WACC (in %), the enterprise value, the net debt bridge, the equity value and the value per share (CAD).
2. **`investment_memo.docx`** — at least 600 words, with these sections: business overview; assumptions; valuation summary
   table (WACC, PV of explicit cash flows, PV of terminal value, enterprise value, net debt, equity value, value per share);
   sensitivity table; comparables cross-check; risks (including the legal matter and leverage); recommendation versus the
   current share price using the house convention in my memo.
3. **`COMPLETION.json`** — per `COMPLETION_SCHEMA.json`. List in `issues_found` anything in the data room that is inconsistent,
   erroneous or that you decided to exclude, with the reason.
4. If the portal is available: submit the `valuation_summary` form (WACC in %, enterprise value in CAD millions, value per share
   in CAD, recommendation).

## Conventions

- Currency CAD; the model works in CAD thousands like the statements; present per-share values to two decimals and the WACC to
  two decimals of a percent.
- Valuation date 31 December 2025; explicit forecast FY2026–FY2030; the assumptions in `assignment_memo.docx` are binding.
- Where documents disagree, the audited financial statements govern; say so in the memo and in `COMPLETION.json`.
- Use only the information in the data room. Do not look up LCI or the comparables elsewhere — they are not public companies
  you would find anyway.


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**Working conventions (identical for every assignment).** Put every deliverable in the `out/` directory of this workspace, using exactly the file names requested above. Do not modify the files in `inputs/`. Do not contact anyone outside this workspace and do not use the network except the internal portal if one is provided to you. When you finish, write `out/COMPLETION.json` following `COMPLETION_SCHEMA.json`. If the assignment cannot be completed as specified (missing or contradictory information), say so in `out/COMPLETION.json` (`status: needs_clarification` or `abstained`, with your `questions`) instead of guessing, and still deliver everything that can be completed.