A 5,000 words report plus a 250 words executive summary. A report based on very detailed research into company accounts. Analyse company’s business activities – Use your own explanation of how company’s business model works (DO NOT COPY COMPANY’S STATEMENTS)
• Identify key drivers of business model and competitiveness
– Use independent data on company’s markets
– Assess future prospects for these markets
• Compile financial ratios for performance, efficiency, liquidity and solvency for company and at least three competitors
– Ratio analysis over the past five years
– Comparing these ratios – draw your own conclusions, NOT just descriptions
Structure of the Project
– equity data, company fundamentals, prospects, valuation & recommendation
• Show key data on share price & performance, valuation price & ratios and investor recommendation
• Two to three statements which explain your forecasts for the company’s revenue, income and cash flow
• Key economic and market forces driving company’s prospects
• How this translates into valuation, target price & recommendation
• Summarise company’s activities and business model
– What does it sell? Where? To whom? With what competitive advantage? • Main markets served by company – by region, product, customer type
• Typical features which MIGHT affect your company:
– Demographics, social trends, consumer behaviour, fashion, changes in global trading patterns, environmental issues
• Avoid lengthy history and descriptions
• Use short, sharp summary of what drives this business)
– Company’s business model – which markets drive its revenue and profit?
2) SECTOR REVIEW:
– the market forces driving demand, supply, competition, prices, costs & margins in the sectors which contribute most of the company’s revenue and profits
• Sector comments must be relevant to company’s operations
• Identify two to four key market forces driving demand
• Understand how competition works in sector
• Reach clear conclusion on likely future directions
• Reach clear conclusions about specific market forces
• Support those conclusions with statistical evidence
• Do NOT simply download economic and sector data without explaining how it affects sector prospects
3) COMPANY ASSESSMENT:
– company’s competitive position in sector, past performance relative to peers (using financial ratio analysis), key drivers of future trading, conclusion on their likely direction and impact on financial forecasts
• Assess historic performance and future prospects
• Analyse 5-year trends in financial ratios:
– Has it improved or deteriorated in recent years?
– Have there been any volatile movements – what may have caused them?
– Is the company reliable in delivering sustained earnings growth?
– Or is it poised for recovery from a low point? Or unlikely to recover?
• Compare company’s performance with sector peers
– Has it performed better or worse than its peers?
– Are its finances stronger or weaker than its peers?
– Has it been operated more efficient than its peers?
– translate trading assumptions into sales, costs, income & cash flow forecasts
• Revenue from demand, price & competitor analysis
• Expenses from assessment of supplier pressures and movement in operating overheads
• Net income & earnings from tax, debt & interest rates
• Dividend from earnings and payout ratios
• Cash flow from working capital and depreciation accruals
• Balance sheet from accruals, retained earnings and cash flow
– translate forecasts into DCF & DDM valuations relative to share price, and Price Multiples relative to peers
Absolute Valuation Methods / Intrinsic Value
• Convert dividend forecast into DDM
• Convert free cash flow forecast into DCF
Relative Valuation Methods / Price Multiples
• First-year forecast of sales, earnings & book value of equity
• Calculate ratios of:
• Compare with peer company ratios
6) RECOMENDATION AND CONCLUSION:
• If wide variations (>15%) between these valuations, check assumptions
– does cash flow over/understate by using too high/low depreciation charge?
– does dividends over/understate by using too high/low payout ratio?
• If after re-examination values still widely divergent, explain why
• Compare each valuation with current share price to identify Buy (valuation > share price) or a Sell
(share price > valuation)
Criteria for marking the reports
USE OF DATA
• How well have you used data to compile an INDEPENDENT view of company prospects, accessing websites of:
– Company & its competitors
– Industry bodies
– Government statistics and reports
– Financial and economic reports
LOGIC, ARGUMENT & FINANCIAL FORECASTS
• Logical argument to support assessment of company prospects
• Accuracy and clear exposition of company’s financial forecasts
• Independent thinking to link research data to conclusion
• Presentation of argument, financial forecasts and valuation
1-4 added materials is past 5 years statements of BT group
5-9 is reading list for this report
The post Identify key drivers of business model and competitiveness. Show key data on share price & performance, valuation price & ratios and investor recommendation. appeared first on Essay Hotline.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.