Syndicate assignment -A financial valuation of a company

In a syndicate of 3-5 people you are required to undertake a financial valuation of a company listed on the Australian Stock Exchange. You are required to value the equity of the company and provide a buy, sell or hold recommendation based on your analysis. You will be advised of the company in class.

The objective of the assignment is not achieve the current share price. Rather it presents an opportunity for you to apply your valuation skills and knowledge of financial management issues to an actual company. This assignment brings together most aspects of the course, including cash flow analysis, capital structure issue, estimating the cost of capital and valuation techniques.

Your report should include the following components:

i. A one-page executive summary that outlines your main findings and recommendations.

2. A summary of the company and its markets:
-Products
- Markets, market share and growth
-Competition
-Management and other resources

3. A summary of key financial ratios and examination of factors that have driven the performance of the company over recent years.

4. A summary of future prospects for the company and an outline of the key assumptions that you will use for your financial valuation. Please ensure that you articulate the basis for your assumptions.

5. A description of the financial valuation methodologies that you will use in your project.

6. A summary of your valuation results and your recommendations.

7. Appendices: valuation spreadsheets, ratios and calculations.

The main objective of the assignment is to demonstrate your understanding of the valuation of the equity of companies.

Parts 2 to 4 are used to build your financial model. Part 5 demonstrates your understanding of the theoretical and practical aspects of the various valuation methods. In Part 6 you will need to draw together the information from Parts 2 to 5 to obtain the valuation required which will support your recommendation.