Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Company Valuation Project (STARBUCKS) Objective: The Company Valuation Project emphasizes value-based management as a tool for understanding a company's value-drivers and the impact on a company's value due to different potential operating strategies, including improvements in supply chain management. You will be required to use a spreadsheet valuation model to estimate a company's value and identify required external financing requirements. You are going to make an estimate of the fundamental value of your company and use price projections based on PE ratios and P/Sales ratios. To begin, you will need 5 to 10 years of data for your company. You can obtain this using Thomson Reuters or Bloomberg. Students will form groups of 4 that are determined by their own selection. It is necessary for the students to make a decision on groups by the end of the class following the announcement of the project. Every group will submit only one hard copy valuation report for the chosen company (Excel spreadsheet, write-up Word doc and PPT). Re-read covered material after class plus all related research studies, articles and materials recommended. For a better understanding of the entire material covered in class, study with your group members. Ask each other questions and try to find the answers together. If one of you has a question, the group is responsible to find an answer. If you still have difficulties, please come and see me. Under the heading of II. Financial Analysis 2. Find out some key ratios and incorporate them into your report. Summarize briefly how the company has performed financially compared to the industry (include a table explaining where did you find all the industry ratios as determined by the SIC code) as well as the screenshots of the Thomson Reuters or Bloomberg Screens for all the ratios such as: Ratios Company-Most recent annual ratio Industry -Most recent annual ratio Source for the Industry ratio Asset Turnover 1.73 1.36 (specify mean or median) T1Banker/CompanyAnalysis/ Comparables/KeyFinancialRatios -II-II-II-II-II- -II-II-II-II-II- -II-II-II-II-II- -II-II-II-II-II- a. Under growth rates, how does your company's sales and EPS growth rates compare with the industry and the S&P 500? Is your company more or less attractive to its competitors? Looking at the graph which should show your company's results over the last 5 to 10 years, has your company been improving over time? b. How does your company's P/E, Price/Sales, Price/Book, and Price/Cash ratios compare to the industry? Remember, lower ratios make your company look relatively less expensive. How has your company's PE changed over time? c. How does your company's net profit margin compare to the industry and has it been getting better or worse over time? d. How is the debt/equity ratio for your company. Is your company highly leveraged relative to the industry or just average? e. Compare the company's ROA and ROE relative to the industry. Is your company more or less attractive relative to the industry? Has the ROE been getting better or worse over time. OBS: Creating tables and building charts for this section are very useful. Don't forget you have to discuss your findings. Formatting: 1. An integrated report reads better than separate sections with obviously different authors. The group is meant to work together on all aspects of the assignment; not 'divide and conquer'. 2. Do not rehash what should be common knowledge. For example, do not describe the procedure for estimating the cost of equity; but do explain how you chose your inputs and why your firm has the cost of equity it does. 3. Use tables to summarize data and findings. Use legible font (10-12 point for tables and figures). 4. The questions above are designed to guide you through the project. Each firm will have additional unique risk and opportunities to explore. 5. Reference all data sources, but do not include them in your report.
Dressler Engine Tuning just decided to save money each year for the next 4 years to help fund a new building. If it earns 5.5 percent on its savings, how much will the firm have saved at the end of year 4?
RRR Inc. has $1,000,000 in debt. Using free cash flows and WACC and a estimated growth rate, you calculate the total value of the firm to be $2,000,000. If there are 100,000 common stock shares outstanding, what is RRR's estimated stock price per ..
If i had exchanged £20,000 into rubles in January and converted back into pounds in November, paying 2.5% commission for each transaction, how much would I have in pounds, to the nearest penny?
What does the upper control limit of either a p, np, c, or u chart tell us about the process? What does the lower control limit tell us?
What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?
tesar chemicals is considering projects s and l whose cash flows are shown below. these projects are mutually exclusive
Salte Company is issuing new common stock at a market value of $27. Dividends last year were $1.45 and are expected to grow at an annual rate of 6% forever. Flotation costs will be 6 percent of market price.
Your best taxable investment opportunity has an EAR of 4%. You best tax-free investment opportunity has an EAR of 3%. If your tax rate is 30%, which opportunity provides the higher after-tax interest rate?
A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5%, and a WACC of 10%. What is its value of operations? What is its intrinsic MVA?
task background in this weekrsquos discussion you learned how to construct probability distributions and graph them.
Which of the following is not true if interest rates rise?
some traders use hedging as a means of generating financial income. explain how businesses might use hedging to
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd