Question
Part 2: Calculate the financial ratios for your company and its peers. Do a comparison first for your company historically (at least 2-3 years or
Part 2: Calculate the financial ratios for your company and its peers. Do a comparison first for your company historically (at least 2-3 years or last 2-3 quarters), ie, are the ratios getting better or they are getting worse. Then compare it with its peers and the industry. I am looking for three sets of ratios: Liquidity, Profitability and Asset Utilization. Use yahoo finance for financial statements (they go back 4 years for most companies).
Part 3: Calculate the Beta (ensure the beta is close to the beta on yahoo finance) for your stock and peers and then compare the expected return, using the CAPM model, for your firm vs its peers. Also, compute the Sharpe ratio for your firm and its peers. According to the two methodologies, is your firm a good investment? Or should one invest in its peers? I am looking for a couple of pages summarizing your methodology to calculate beta, expected return and Sharpe ratio and a spreadsheet showing all your work. Please look at the folder "Project" for helpful links.
Part 4: Equity multiples. I am looking for a relative valuation exercise, where you pick the appropriate multiples and come up with a valuation based on that. Please refer to Damodaran Relative Valuation presentation. Link provided in Content " Project".
the two companies are FEDEX and BOEING independently
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