A report based on very detailed research into company accounts

Requires full mastery of all Excel techniques and formulae

Single company valuation study.

1) Analyse company’s business activities

  • Use your own explanation of how company’s business model works – DO NOT COPY COMPANY’S STATEMENTS

2) Identify key drivers of business model and competitiveness

  • Use independent data on company’s markets
  • Assess future prospects for these markets

3) 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

4) Detailed forecasts of income statement and balance sheet for next five years and in perpetuity

  • Justify your forecast and support with statistics

5) Apply valuation techniques, with full spreadsheet support (see tutorials)

  • Capital Asset Pricing Model (CAPM),
  • Discounted Dividend Model (DDM),
  • Discounted Cash Flow (DCF),
  • Relative price multiples of earnings and cash flow.