Pick any publicly traded firm on Borsa Istanbul (BIST). You will do the following analyses and write a report as mentioned above.

TPRA- Petrolieum Refineries

1. Industry background (20 points)

• History and evolution of the industry
• Any past, ongoing, or anticipated merger wave?
• Industry concentration, C4 (total market share of the 4 leading firms) and C8 (total market share of the 8 leading firms, if possible)
• Contribution to Turkish GDP and employment

2. Financing and valuation of firms in the industry (30 points)

• Leverage, interest coverage
• Market-to-book and price-to-earnings ratios
• Firm size (assets, sales, market value of equity)
• Stock price performance
• Valuation of the company using multiples (Try to value both enterprise V and equity E)

3. DCF valuation analysis for one firm (40 points)

• Estimate the WACC
• Estimate the free cashflows for the upcoming 10 years (2023 through 2032)
• Calculate the terminal value
• What is the total (enterprise) value of the firm? What is the value of its equity? (You can use the book value of debt to subtract from enterprise value)

4. Based on your analyses in parts 2 and 3, is the stock currently under or over-priced? Discuss why. (10 points)