Based on your selected company you are to perform TWO tasks.
1. You need to assess your chosen company’s financial performance and financial health. For
doing so use all the recommended tools of financial analysis that you have learned in this class. Once you performed a thorough financial analysis you are to give a recommendation on the financial health and performance of the company.
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2. You are to provide a valuation of your chosen firm. Using dividend valuation models and any other appropriate methods provide a valuation for the firm. Clearly describe the sensitivities and assumptions to your valuation modelling. Based on your valuation and the current market price give a recommendation on whether an investor should buy shares in your chosen company – give a clear reasoning for your recommendation.
The aim of the assignment is to enable you to be familiar with the financial reports that are published by companies to provide information to the interested parties. You will use your accounting and finance knowledge. It is intended that you should interpret the information from both the financial statements and the other reports that are included in the Annual Report and also in the other announcements that companies make in your period of analysis.
Financial statements to be examined will include statement of financial position (balance sheet), income statement (profit and loss), and cash flow statement.
The period you should cover is a minimum of four years. You can also consider a longer period for your analysis.
The report should also consider what competitors are doing and how the firm is performing in relation to the industry and other benchmarks. We expect 2-3 peers for single-authored reports and 5-7 peers for group reports. You should also include a comparison to peer firms/industry average to help put your financial in context. Therefore, industry/peer comparative analysis should be included in your report.