Daniel Sweeney

Student NameDaniel Sweeney
Faculty Mentor NameDavid Brown, PhD
CollegeWarrington College of Business
MinorComputer Science
Research InterestsValuation, Technology, Investing
Academic AwardsBenacquisto Scholarship (2018), Presidential Scholarship (2018), Dean’s List (2018-2020), University Scholars Program (2020)
OrganizationsGator Student Investment Fund, UF Men’s Club Soccer Team, Florida Leadership Academy, Alpha Tau Omega
Hobbies and InterestsSoccer, Hiking, Intramurals, Travel

Research Project

Estimating Long-Term Corporate Growth Rates and Their Impact on Short-Term Returns?

When gauging the intrinsic value of a company using Discounted Cash Flow Analysis, three inputs strongly affect the terminal value: cash flow forecasts, the discount rate, and the growth rate. While best methods to estimate cash flows and discount rates have been studied extensively, methods to estimate growth rates are unreliable and often lack quantitative backing. The aim of this project is to address this void by creating a method to estimate long-term growth rates (over 5-year and 10-year periods). Then, this project will create sector specific models to estimate long-term growth rates using factors unique to specific sectors. Finally, it will devise a trading strategy that picks best value stocks based on DCF valuations using the company’s estimated long-term growth rate to maximize excess returns to the overall market in short-term time horizon (1-year and 3-years).