Ompany financial statement information and valuation analysis
This project consists of individual or team-based analysis of financial statement information and the valuation of a company of your choice. This project allows you to dig deeply into the strategies, drivers of profitability and risk, growth opportunities and accounting and valuation issues of a company you are interested in. This project also gives you the opportunity to apply and refine your analysis and valuation tools gained throughout the course.
The project involves a current analysis of a Canadian or American company using the materials developed during the course. Please choose a Canadian or American company. Download the companyas most recent annual report and identify the companyas stock price as of November 1, 2012. You should then prepare a valuation to determine the intrinsic value of the stock and compare your intrinsic value to the actual share price on November 1st. The valuation and accompanying report should include some or all of the following:
a? Industry analysis
a? Business strategy analysis
a? Reformulate the financial statements a?o Accountingqualityissues
a? Financial analysis a?o Profitability and growth ratios o Time-series & common-size o Comparison to competitors
a? Forecast the financial statements
a? Valuation models: a?o Residual earnings o Abnormal earnings o Free cash flowa?o Dividend discount
a? Sensitivity analysisa?o Use a range of discount rates, growth rates, etc.
a? Buy/Sell/Hold recommendation