Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In this step you are required to forecaste for the next five (5) years the key accounting drivers of sales growth, profit margin, asset turnover

In this step you are required to forecaste for the next five (5) years the key accounting drivers of sales growth, profit margin, asset turnover and Return on net operating assets and including these figures in the Key Value Drivers worksheet in the spreadsheet. You will then arrive at the valuation of your firm.

You might like to compare your valuation for the firm with its current and past share price. For example, you can google 'share price' to find your company's share price history. There are many websites that can give you share price histories. Have a look at the firm's current share prices. Some people feel 'great' if they have ended up valuing their firm at close to its current share price; and 'worried' if their value significantly diverges from the current share price.


Include any commentary you wish to include about your valuation.Includes any comments or thoughts you wish to include about your forecasts and valuation. How confident are you with the results of your analysis? Would you make investment decisions based on your analysis? Why or why not? You may wish to comment about how effective you have found the Discounted cash flow (DCF) and economic profit approaches to be in valuing your firm. At the end of your analysis, please recommend whether you think equity investors should BUY, SELL or HOLD their shares in your firm, after considering your valuation of the firm and its current share price.


write down your comments in any form you wish. As a suggestion only, you could use the following headings: Background; Financial Highlights; Key Aspects of Forecasts; Valuation; Recommendation. Please feel free to write up your view of the value of your firm using whatever headings or formats you wish. consider your opinions with supporting evidence. Please keep your comments reasonably brief. You can use bullet points where appropriate.


Share price- https://www2.asx.com.au/markets/company/ajx


Alexium website- https://www.alexiuminternational.com/




Alexium International Group ltd
KEY VALUE DRIVERS
Years ended 30 June


2019 2020 2021 2022 2023 2024 2025 2026 2027 2028


Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast
Sales growth (%)
-57.5% 20.2% 19.7% 12.3%





PM (%)
-95.6% -44.6% -24.9% -40.1%





ATO (times)
1.26 1.22 1.53 2.16




0.00
RINOA












US$ US$ US$ US$ US$ $000 $000 $000 $000 $000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Alexium International Valuation Commentary UnfortunatelyI cannot directly access and analyze financial data to perform a full valuationHoweverI can of... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Finance questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago