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An Executive Summary Brief Overview of Companies + Background of Three Stocks

This document provides an outline for analyzing and valuing three stock options. It includes gathering background on the companies and their stock performance over time. Key factors that influence stock prices like acquisitions, financial ratios from annual reports, and macroeconomic conditions will be evaluated. Commonly used valuation models like the dividend discount model, Gordon growth model, and discounted cash flow analysis will be applied to estimate the stocks' fair value. A recommendation will be made on whether to invest based on a critical analysis and the investor's risk tolerance. Supporting documents will include literature reviews, company annual reports, and calculations.

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Kimi Rin
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82 views3 pages

An Executive Summary Brief Overview of Companies + Background of Three Stocks

This document provides an outline for analyzing and valuing three stock options. It includes gathering background on the companies and their stock performance over time. Key factors that influence stock prices like acquisitions, financial ratios from annual reports, and macroeconomic conditions will be evaluated. Commonly used valuation models like the dividend discount model, Gordon growth model, and discounted cash flow analysis will be applied to estimate the stocks' fair value. A recommendation will be made on whether to invest based on a critical analysis and the investor's risk tolerance. Supporting documents will include literature reviews, company annual reports, and calculations.

Uploaded by

Kimi Rin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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contents An executive summary brief overview of companies + background of three stocks Background of companies and past history (include:

stock graphs- yearly graphs, tables of conditions/circumstances in both ways negative or positive) General information. Stock value Prospective News that affects companies stock value acquisition, fall in share price. Graphs, stock charts Macro-economy conditions Analysis Annual report o Ratios o WACC Fair price - valuation model o constant growth model o DDM (dividend discount model) or zero growth model or [P = D1/ (r-g)]

Word budget 250

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Gordons growth model

The variables are: P is the current stock price. g is the constant growth rate in perpetuity expected for the dividends. r is the constant cost of equity capital for that company. D_1 is the value of the next year's dividends. NPV/ Discounted Payback (discount free cash) CAPM SML Beta systematic risk Corporate failure prediction model Market anomalies Efficiency Market hypothesis Financial ratio e.g. P/E Need to value the stock you choose 1) no- growth model 2) constant growth model Choose a valuation model 1250

Equity Valuation

Estimate its future 1) dividend payments 2) dividend growth rate Literature review Background Annual report Annual report items WACC = Cost of capital of the Co. Coefficient of correlation Financial ratios Put into our appendix Co. information what is the co.? investor interest Charts, picture, diagrams or graphs 1) Profits 2) Invest or not Rate used to compare with potential investment in projects Vs. internal rate of returns ??????

systematic risk ROCE = ROI ROE =

Long term debt (% level of liabilities within the Co.)

Gearing=

Liquidity = [Capital employed = + Debentures] + Pref. Shares

A critical evaluation on the equity value of the three stocks through different models Recommendation #### Assumption the investor might be a risk adverse or a risk taker 500 @@@ How much is the budget of the investor (100M HKD?) A critical evaluation on the equity value of the three stocks through different models

Conclusion Appendix Project planning and reflection form Literature reviewIntroduction of the companies and their status in stock market and their share prices (we should look relevant information and announcements from the companies) Calculation Graphs Reference list

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