Are your stocks over or undervalued? What is the appropriate value of your stocks? How are the pertinent financial ratios performing? What factors are influencing the ratio performances (pandemic, elections, change in government leadership, products, competition economy)? What is making your stocks move in price?

Deliverable:

1. Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return of 8% and at 12%. (Note that the growth rate must be less than the required rate of return.) Make sure you list the date of the valuation and the closing price of your firm's stock. Each firm's required rate of return will depend on its beta.

2. Is the stock of each of these companies over or under valued?

3. What is the expected return using the CAPM model?

4. Prepare a time series ratio analysis (liquidity, activity, debt, profitability). Identify any events during the period that may have caused the stocks' price to increase or decrease, explaining how these events affect the stocks' prices.