Calculate the stock fair value using the models

Reference no: EM131885801

Questions - Hexcel is the Company Name.

1) Research and describe your company's competitive strengths, economic moats and competitive strategies.

2) Look up the beta on your stock on Yahoo /finance, using the historical risk premium of 6% and risk free rate of 4%, calculate the expected return of your stock under CAPM.

3) a) Perform a ROE analysis on your company.

b) Calculating the FCF.

c) Calculating capital weight and WACC.

4) Use the three valuation models to value your stock:

Give rationales for your input assumptions such as growth rate and discount rate;
Calculate the stock fair value using the models;
Set price target based on the weighted average value
Recommend buy / sell decision based on the criteria

5) A) Explains how diversification works to reduce overall risk of a portfolio;

B) Give an example of a diversified portfolio.

C) Explains how people in the 25 - 35 age groups may choose their efficient portfolios on the Efficient Frontier.

Stock valuations
Setting price target
Investment summary and recommendation.

Reference no: EM131885801

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