Stock Valuation and Analysis

User Generated

ubbqyr20747

Business Finance

Description

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.

Assignment Steps

Resources: Yahoo Finance

Select a Fortune 500 Company from one of the following industries:

  • Pharmaceutical
  • Energy
  • Retail
  • Automotive
  • Computer Hardware
  • Manufacturing
  • Mining

Access Yahoo Finance and enter the company name.

Review the financial information and statistics provided for the stock you selected and answer the following:

  • 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 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?

Explain in 700 words why you would or would not recommend investing in this stock.

  • Describe the relationship between the value of the stock and the price to earnings ratio.
  • What information does the Market Capitalization (Market Cap) and Beta provide to the investor?

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Explanation & Answer

Morning too buddy.Here you go..

Surname1
Student's Name
Institution
Professor's name
Date of submission
Stock Valuation and Analysis: Merck & Co.
Introduction
Merck &Co. Inc. is a giant global pharmaceutical manufacturer based in New Jersey. The
company was ranked among the 500 leading companies globally in terms of revenue generation
and market capitalization, by the Fortune magazine. In this paper, analysis of important financial
information is made, with emphasis put on key indicators for company’s growth. Consequently,
from the analysis, an informed decision on whether to invest in this stock or not will be drawn
based on four main items; stock value, price to earnings ratio (P/E ratio), market capitalization,
and beta. A summary of the company’s financials follows ("MRK Key Statistics | Merck &
Company, Inc. (new) Stock - Yahoo Finance").
item

Information/ value

Sticker symbol (NYSE)

MRK

Current stock price

63.95

Market capitalization

172.887B

p/e ratio

34.32

Enterprise value

193.38B

Surname2
Beta

0.94

Closing price (last 5 days)

13th, 63.69; 12th, 63.83; 11th, 63....


Anonymous
Just what I needed…Fantastic!

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