General Motors Stock Valuation and Analysis

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Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest.

Select a Fortune 500 Company from the list below:

· Pharmaceutical - Pfizer

· Energy - Exxon

· Retail - Costco

· Automotive - GM

· Computer Hardware - Intel

· Manufacturing - Boeing

· Mining - Newmont


Step 1 - (Add as an APPENDIX after the references page within the WORD document in Step 2 below)

Access Yahoo Finance and enter the company name (see links below). Review the current financial information and statistics provided for the stock you selected and answer the questions. Copy the questions below to the page immediately after your references page and title it as "Appendix". Then, simply provide the answers after the questions. You do not need full explanatory paragraphs for this requirement as this is simply a question and answer requirement,

· What is the ticker symbol of the company you chose?

· What is the Current Stock Price?

· What is the Market Cap for the stock you chose?

· What is the Price to Earnings Ratio?

· What is the Dividend and Yield?

· What is the Enterprise Value?

· What is the Beta?

· Was there a Stock Split, and if so, when?

· What was the closing stock price for EACH of the last 5 days?

· What was the 52 Week High for this stock?

· What is the Book Value per Share?

· What type of rating are analysts recommending (i.e. buy, hold, etc.)?

· What is the target price analysts are predicting for this stock?

· What is the analyst's average revenue estimate for next year?

· What are some of the significant news items and press releases made by the company over the last year?

STEP 2 - (Submit as a WORD document in APA format)

Explain why you would or would not recommend investing in this stock based on the points below. Your outline for your paper should look similar to the following:

· Intro

· Describe the relationship between the value of the stock and the price to earnings ratio.

· What information does the Market Cap and Beta provide to the investor?

· Your recommendation

· Conclusion

· References

· Appendix (this is Step 1 from above)

Each point above should be a paragraph containing 4-5 sentences, with the exception of the reference and appendix pages. There are required references for each assignment. Those are given to you below. So, all you need to do is copy, paste and then proceed to double-space, alphabetize and format into a hanging indent. You should not need to use other references. But if you do, format those using the Reference and Citation Generator Tool (see link below).

Minimum required references include your textbook and your chosen firm's Yahoo Finance webpage (see below).

The textbook reference is as follows:

Ross, S., Westerfield, R., Jaffe, J. & Jordan, B. (2016). Corporate finance (11th edition). New York, N.Y. McGraw-Hill Education.

The Yahoo Finance webpages for the various companies are listed below (choose one company):

Yahoo Finance. (2019). Pfizer Inc. Retrieved from

Yahoo Finance. (2019). Exxon Mobil Corporation. Retrieved from

Yahoo Finance. (2019). Costco Wholesale Corporation. Retrieved from

Yahoo Finance. (2019). General Motors Company. Retrieved from

Yahoo Finance. (2019). Intel Corporation. Retrieved from

Yahoo Finance. (2019). The Boeing Company. Retrieved from

Yahoo Finance. (2019). Newmont Mining Corporation. Retrieved from

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Explanation & Answer




Stock Valuation and Analysis: General Motors



Stock Valuation is the process through which investors ascertain the long-term value of a
company's stock so that they can make an investment decision. Stock valuation is ascertained
using different financial ratios but not limited to the Dividend Discount Model (DDM) and the
Price-to-Earnings (PE) ratio. The stock valuation focuses on the company's management
efficiency, financial stability, and earnings growth to ascertain whether the company's stock is
overvalued or undervalued. With such information, investors will decide whether to buy or hold
stocks. In this report, General Motors stock valuation information will be analyzed to ascertain
its investment worthiness based on the critical elements of its stock potential.
The Relationship between the Value of the Stock and the Price to Earnings Ratio
The relationship between the value of a company's stock and its price to earnings ratios is
that the PE ratio is used as the baseline of valuing the stock, given that it measures the return on
each price paid to the stocks of the company. Since the main motive of investors is to earn profits
from the investment in the stocks, the price paid to acquire the stocks is measured against the
earning from the stocks to ascertain the real monetary value of the stocks (Ross, Westerfield,
Jaffe & Jordan, 2016). Thus, stock value is directly related to the PE ratio in that a higher PE
ratio would indicate a higher value for the stocks.
The PE ratio is, therefore, an approach of valuing stocks by comparing the price paid to
acquire the sto...

Just what I needed…Fantastic!


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