Reference no: EM131955521 , Length: word count:700

Investment Banking Assignment -

Topic: Comparable Companies Analysis Intel, NVIDIA Qualcomm TI (Texas Instruments).

You are an investment banker who has assigned the task to evaluate, through the first tool of valuation (comparable companies analysis), a target company. The target company needs to be a US public listed company. Once you determine and decide (as a group) the target company, you will need to find a set of comparable companies.

To do so, you have to study the target's business and financial profile. Specifically:

Business Profile -

• Sector: select companies in similar sector or sub-sector.
• Products and Services: select companies selling similar products or services.
• Customers and End Markets: similar customer base and end market (example selling to homebuilders or retailers).
• Distribution Channel: select companies that have similar distribution channels (example selling to the retail or wholesale market).
• Geography: select companies operating in similar geographic areas.

Financial Profile -

• Size: select companies with similar size (sales, gross profit, EBITDA, EBIT, net income...)
• Profitability: use measures of profit at the numerator and sales in the denominator. Higher profit margins, higher valuation.
• Growth Profile: analyse growth of sales, EBITDA, earnings per share (EPS).
• Return on Investment: measure the company's ability to provide earnings. Return on invested capital (ROIC), return on assets (RoA) and return on equity (RoE) are the most commonly used.
• Credit Profile: measure the level of leverage of a company and its ability to generate interest payments.

You only need finish the Business Profile part in total 700 words.

Attachment:- Assignment Files.rar