You are a group of analysts assisting a head of equities provide investment advice for clients. Using at least 2 methodologies available from the following 4 groups: DDM, FCF, Residual Income, Market Based Valuation/Price Multiples, come up with intrinsic value of your chosen company's ordinary share as at 30 June 2016, as well as a one year price target. Put together a comprehensive report on how you arrived at that valuation and price target and do so using Section 3 and 4 of Chapter 1 of Pinto to be guided on the content of that report and key aspects about how you go about developing a professional valuation report. Exhibit 2 on page 31 includes a summary of a research report but you are not obliged to stick with that format exactly".
You have a limited choice of a company: SEEK or QANTAS.
This assignment contains:
1. Part 1: Group Written Assignment - Instructions
2. Part 2: Group Presentation - Instructions
3. Commonly asked questions
1. Part 1: Group Written Assignment -
As part of this assessment you are required to conduct your own research of market and financial data online.
Evidence of Group Work
Each group must provide 3 brief records of group meetings as part of the assignment. The headings included in Commonly Asked Questions below are to be followed. These briefly list who was present at meetings as well as tasks and contributions. Please note that all group members need to contribute equally to the work. If a group member does not contribute adequately, the meeting minutes can be used as evidence to demonstrate this. The student's mark can be reduced by the tutor or lecturer if he or she considers that there is sufficient evidence of an inadequate contribution from a group member. In an extreme case, a student can receive zero marks. A submission will not be marked if Evidence of Group Work is not provided. If you need a minutes pro-forma please advise.
Company to be selected
Your group is required to conduct a valuation of either SEEK or QANTAS. Both companies are listed on the Australian Stock Exchange and have their headquarters in Australia.
SEEK
SEEK is an MNC (Multi-National Corporation). Traditionally its major business has been in Australia but the China business has just overtaken that. It also has businesses in other parts of the world, including Brazil that has been hard hit by that country's recession. It traditionally pays dividends and this information is available on its web-site. You may care to refer to:
https://ir.seek.com.au/FormBuilder/_Resource/_module/NCkygw0x0kmQG8Q1PXfUNg/file/FY16_Full_Year_Results_Presentation.pdf.
By referring to the ASX web-site you will also notice the share price has been moving up consistently over the last year.
QANTAS
The following chart shows how Qantas has turned around EBIT in Domestic, International and Jetstar.
2. Part 2: Group Presentation -
You will be assessed on how interesting and engaging the presentation is and how professional your presentation is. Groups must present the lecturer with a handout of the slides, structured in a logical manner.
3. Commonly asked Questions
Q: For the written assignment, what if I am above the word limit of 2500? How much can I exceed the word limit by?
Q: Can our presentation be longer than 10 minutes?
Q: Can we put together a group with a number smaller of bigger than 4 students?
Q: Do I need to reference sources such as the textbook, other finance textbooks and online sources?
Q: Do I need to reference the lecture slides or tutorials from this course?
Q: What is plagiarism and what are the consequences?
Q: Are references part of the word count?
Q: Will we be assessed on the quality of our group meeting records?
Attachment:- Assignment.rar