Assignment
Executive Summary
• Overall Recommendation
o Is the firm over/under valued?
o What position should the company take to create more value? (recommendation in sample project was taking a BUY position)
o Describe business strategy and how this provides an advantage/disadvantage in the company's industry
o How could the company increase value?
o Has the company made any decisions that have negatively impacted its value/performance? How has the company recovered?
o What different avenues can the company expand on for the future?
• Summary Rational for recommendation
o This piece is a brief explanation of how we determined all of the factors in the recommendation (no more than a paragraph)
- Ex: examined/analyzed company historical performance with an emphasis on the beverage industry
• Specific Considerations
o Taking industry and societal factors into account, what factors speak to the company's performance during the periods we are examining?
- What caused declines in company performance?
- How did the company respond to negative performance? Did they do anything? Are there plans in place to make changes or innovate based on reasons for declines?
- If there was a spike in performance, what do what do they believe caused positive increases? Was it an expected spike? How will they continue to capitalize on positive results?
Accounting Analysis
• Summary of Key Accounting Policies
• Assess Accounting Flexibility
• Beneish Model Calculation
Financial Analysis - Multiyear Analysis/Comparisons
• Analysis of profitability, asset management and risk.