finance templates

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EbfrShat

Business Finance

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    1. Online Research: using Yahoo Finance, look up 4 companies in different industries (see Template 1 posted in Canvas “Files” for assigned companies) and create a table comparing their trailing PE ratio, their average Earnings growth rate over the past 5 years, their forecasted EPS growth rate for the next 5 years, and their forecasted growth rate in stock price between now and the 1 year analyst estimate. Answer thought questions on Template.
    2. Online Research: using Yahoo Finance, look up 4 companies in the same industry (see Template 2 posted in Canvas “Files” for assigned companies) and create a table comparing their ratios for Price/Earnings, Price/EBIT, Price/Revenues, and Price/Book Value. (REMEMBER you must use either per-share OR total company values in both numerator and denominator to calculate ratios: you can’t compare a per-share price with total-company earnings, for example, or you will get a bizarre number.) Answer the thought questions on the Template and follow the instructions to calculate the value of a “new” company in this industry.

Deliverable: 2 Completed Templates

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BUS 170 TEMPLATE FOR STOCK VALUATION ASSIGNMENT STUDENT NAME _______________________________ PART 1: COMPARING COMPANIES IN DIFFERENT INDUSTRIES COMPANY: Industry: Latest Trailing PE Ratio Amazon Facebook Jet Blue Sears Online Retail Social Network Airline Bricks & Mortar Retail Trailing Earnings Growth Rate (“past 5 years, per annum”) Forward Earnings Growth Rate (analysts’ Growth Est for “Next 5 Years per annum”) Forecasted growth rate in Stock Price (current price vs analyst 1 year estimate) Which company has the highest PE Ratio? Does it also have a high forecasted 5 year EPS Growth Rate? How might these measurements be related? Should a high P/E ratio be correlated with a high Forecasted Growth Rate in STOCK PRICE? Why or why not? BUS 170 TEMPLATE FOR STOCK VALUATION ASSIGNMENT STUDENT NAME _______________________________ PART 2: COMPARING COMPANIES IN THE SAME INDUSTRY COMPANY: Amazon LuluLemon Dollar General Sears Industry: Online retail Boutique retail General Retailer merchandise Discount retail “Reasonable” Ratios Valuation of “Your Retail Business” based on this Ratio Retailer Latest Trailing P/E Ratio $ Price/EBIT Ratio $ Price/Revenues Ratio $ 1. Calculate the ratios for the four named companies and fill them in above. 2. What might cause a company to be higher in one ratio, and lower in another, compared to other companies in the same industry? (eg, if a company is higher in one of these ratios, why isn’t it higher in ALL of these ratios)? GIVE SPECIFIC EXAMPLES. 3. Estimate what “reasonable” ratios would be for an average retailer, based on your calculations, reading, lectures, etc. and fill them in above (column 6). Explain how you decided on these ratios: 4. Assume you own a retailer that has sales of $6mm/year, EBIT of $1.5mm/year and Net Income of $500,000/year. Calculate the comparables-based Valuations of your business using each of the three “reasonable” ratios you chose, and fill them in above (column 7).
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Explanation & Answer

Hi please find the attached templates. Do let me know should you need further clarifications.

BUS 170 TEMPLATE FOR STOCK VALUATION ASSIGNMENT

STUDENT NAME _______________________________

PART 1: COMPARING COMPANIES IN DIFFERENT INDUSTRIES
COMPANY:
Industry:
Latest Trailing PE Ratio

Amazon

Facebook

Jet Blue

Sears

Online Retail
175.92

Social Network
43.01

Airline
11.52

Bricks & Mortar Retail
-0.52

Trailing Earnings
Growth Rate (“past 5
years, per annum”)
Forward Earnings
Growth Rate (analysts’
Growth Est for “Next 5
Years per annum”)
Forecasted growth rate
in Stock Price (current
price vs analyst 1 year
estimate)

35.69%

70.10%

59.05%

-10.95%

28.32%

23.77%

4.62%

-163.90%

Current 937.53
Est 1,085.42

Current 150.85
Est 162.72

Current 21.54
Est 25.54

Current 10.38
Est 4.00

=15.76%

=7.87%

...


Anonymous
Great content here. Definitely a returning customer.

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