Assignment - Stock Valuation Study
The term paper for the Managerial Finance is to submit a stock valuation on a listed company in the stock exchange of your selection, preferably a stock that you have accessibility to its financials and other information. The paper should be used as a prospectus of the investment soliciting prospected investors. A full-fledge analysis and a professionally written document shall be submitted. This exercise aims to rigidify the student learning outcomes of the course through practical applications.
The proposed paper structure (this is the ideal structure; students are welcome to add their own sections):
1. Executive Summary: a summary of the paper presenting the concept, the main findings, and recommendations.
2. Introduction: this section shall describe the market and the business of the company and other information you find important for the reader.
3. Economic Analysis: should perform an economic analysis of the country and industry where the company operate using methods such as (PESTEL/STEEP) and thought presenting economic data based on published economic reports.
4. Market Analysis: you need to analyze the market/industry of the proposed business idea. Use analysis tools such as Porter's 5 Forces.
5. Business Strategy: the business strategy is key for proper financial planning (cash flow estimation) and costing, you can use SWOT Analysis to elicit most suitable strategy(s) for your business, and taking in considerations the findings found in the economic and market analysis. Student is also expect to perform a competitive analysis of the company vs. competition, and issue recommendations.
6. Financial Analysis: based on the business strategy you must develop the financial projections of the business including expected Cash Flows (in/out) along with implementing valuation techniques learned in the course to arrive at a fair price, perform financial ration analysis, compare it to the market value and issue recommendations to buy/sell/or hold.
7. Conclusion: this section contains the findings, business risks, and recommendation of the valuation study.