Part 1:
you will be evaluating and valuing a publicly traded company.
Your task for this first Step is to select a company from the list provided. Your company will include: a US company, which is publicly traded on a US market, and is well known with at least one similar publicly traded competitor.
Once you have identified a suitable company to analyze, it is time to look into the company’s history, current situation, and future prospects. Demonstrate your knowledge of the company with a core business activity statement and the company’s strategic business plan using a SWOT analysis as your guide.
Finally for this step and to complete your evaluation, use measurements from financial statements to analyze your target company’s credit risk, profitability, asset utilization, and capital structure. Please provide a comparative analysis for your selected company (target) and a peer company, then a separate analysis for your target and the industry in which it operates.
You may find the tool Ventureline useful for this project. Ventureline provides many useful tools, including the ability to compare a U.S. company against another company, 5 years of financial statements, and 30 different types of financial ratios. NOTE: Click through any security certificate warnings & pop-up blockers that may appear in order to proceed to the VentureLine website and display all content.
When Step One is completed, you will have demonstrated a thorough financial and operational knowledge of your target company. A sample for each part of this step is provided here as a guide. You of course will need to use a different company for your project. Finally, to receive proper credit for your submission be sure to include both in-text citations and complete reference page.
Part 2:
Determinants of security value include company profitability, operating growth, and risk. The first determinant was covered in Step 1. In Step 2 we complete our analysis with:
(a) cost of capital (debt, equity, weighted) and
(b)growth forecast using internal measurements and external data from industry, and macroeconomic analysis.
Similar to Step One, this step will require some research along with calculations. Remember to use the resources provided in the Library Research Guide on your Ulearn site.
Be sure to show all work completed by you and necessary to forecast your company’s growth and cost of capital.
When Step Two is completed, you will have demonstrated a thorough analysis of the risk and expected growth of your target company. A sample for each part of this step is provided here as a guide. You of course will need to use a different company for your project.
Finally, to receive proper credit for your submission be sure to include both in-text citations and complete reference page.
Part 3:
It is now time to make your final valuation calculations for your selected company. Please complete a report summarizing your calculations for at least two valuation approaches. Available options include the Dividend Discount Model, Discounted Cash Flow (FCFF and ROPI) and Market Based methods using income statement and balance sheet indicators.
Your report should include a statement as to why you selected each model and finally, why you think your calculated intrinsic value is more realistic than the current market value of the company. Your answer must include a reference to management’s actions and their relationship to value determinants: company growth, cost of capital, and profitability.
Finally, to receive proper credit for your submission be sure to include both in-text citations and complete reference page.
