Provide a detailed evaluation of an equity investment

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Reference no: EM132352549

Investment and Performance Analysis Assignment -

The assessment for the module is in two parts:

Part 1, involves the use of 'top-down' analysis and intrinsic valuation techniques to assess the future potential of investing in the shares of a chosen company. Your investment choice should focus on contributing to a portfolio with 'growth' as its principal objective.

Part 2, involves assessing the performance of the same company using ROCE, EVA & SVA.

Part 1 Assessment - Equity Valuation

a) Provide a detailed evaluation of an equity investment decision in the current economic climate. Your briefing should include:

i) A review of the 'top-down' analysis that led to the focus on a particular company. A rational for considering particular economies, industries and companies from within those industries should be provided.

ii) A fully explained / justified calculation of the current intrinsic value of the company - established using at least one DCF technique and one relative valuation technique (all figures employed including growth projections to be explained / justified and performance comparisons within industries and / or between countries explained. N.B. illustrative examples used in the lectures / workshops should not be used).

iii) As the methods employed in ii) above are likely to result in different valuations, you are required to provide an academic justification of the valuation method(s) you will rely upon.

Totals for Part 1 - 2,000 words.

Part 2 Assessment - Company Performance Evaluation

a) Present an evaluation of the current performance of your chosen company using ROCE, RI, EVA and SVA. (All figures employed should be up to date, i.e. include the latest published financial statement, clearly explained / justified and any performance comparisons within industries and / or between countries explained).

In regard to EVA the following key adjustments should be considered with omissions being justified.

Non-cash expense e.g. Goodwill

Provisions such as bad debts

Interest on Debt

R&D charges

Accounting Depreciation

Economic Depreciation

Costs relating to non-capitalised Leases

Profit  / income from marketable securities

Unusual gains or losses (-/+)

+ Restructuring charges/profits

+ Minority shareholder interests  - share of profit


Deferred tax charges

Tax provision for year

Actual tax paid

a) Critically evaluate the usefulness of ROCE, EVA and SVA in assessing company performance. Note: you must make reference to journal articles in this section and reflect on your own experiences of using these techniques.

Totals for Part 2 - 1,500 words.

Attachment:- Investment & Performance Analysis Assignment Files.rar

Reference no: EM132352549

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len2352549

8/5/2019 10:22:06 PM

You are required to submit your report both digitally using the assignment submission section on Blackboard and in hard copy at the postgraduate office by the due date. Totals for Part 1 - 50 marks - 2,000 words and Totals for Part 2 - 50 marks - 1,500 words. Further information about general assessment criteria, ARNA regulations, referencing and plagiarism can be found on the module’s site on the e-Learning Portal. Students are advised to read and follow this information.

len2352549

8/5/2019 10:21:58 PM

Word limits and penalties for assignments - If the assignment is within +10% of the stated word limit no penalty will apply. The word count is to be declared on the front page of your assignment and the assignment cover sheet. The word count does not include: Title and Contents page, Reference list, Appendices, Appropriate tables, figures and illustrations, Glossary, Bibliography and Quotes from interviews and focus groups. Please note, in text citations [e.g. (Smith, 2011)] and direct secondary quotations [e.g. “dib-dab nonsense analysis” (Smith, 2011 p.123)] are INCLUDED in the word count.

len2352549

8/5/2019 10:21:50 PM

If this word count is falsified, students are reminded that under ARNA page 30 Section 3.4 this will be regarded as academic misconduct. If the word limit of the full assignment exceeds the +10% limit, 10% of the mark provisionally awarded to the assignment will be deducted. For example: if the assignment is worth 70 marks but is above the word limit by more than 10%, a penalty of 7 marks will be imposed, giving a final mark of 63. Students are advised that they may be asked to submit an electronic version of their assignment.

len2352549

8/5/2019 10:21:44 PM

Time limits and penalties for presentations - The time allocated for the presentation must be adhered to. At the end of this time, the presentation will be stopped and will be marked based on what has been delivered within the time limit. Submission of Assessment: All assignments must be submitted via the Kaplan’s NBS office. Each assignment must be accompanied by an Assessed Work Form which must be completed in full. The assignment will not be accepted by the Kaplan’s NBS office unless the form is completed correctly. Marked assignments will be returned to students. It is advisable to retain a copy of your assignment for your own records. Your mark will be returned on the Assessed Work Form via the Kaplan’s NBS office.

len2352549

8/5/2019 10:21:37 PM

Module Specific Assessment Criteria - Demonstrates significant depth of understanding of how data gathered is applied in valuation models Identifying ‘growth’ potential. Demonstrates significant depth of understanding in respect of issues related to and models applied in valuing shares. Displays significant depth of understanding of techniques which may be used value shares. Displays significant depth of understanding of issues related to techniques which may be used to evaluate company performance. Demonstrates significant depth of understanding in critically applying relevant theory to the specific context of a detailed example of a performance evaluation.

len2352549

8/5/2019 10:21:30 PM

Note: For those assessments or partial assessments based on calculation, multiple choice etc. Marks will be gained on an accumulative basis. In these cases, marks allocated to each section will be made clear. Students must retain an electronic copy of this assignment and it must be made available within 24 hours of them requesting it be submitted.

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