Question
Please make sure that all your outputs/results including the graphs should be presented in a single word/pdf file. However, you also need to upload your
Please make sure that all your outputs/results including the graphs should be presented in a single word/pdf file. However, you also need to upload your excel file to support your results.
Part 3. Choose a stock traded in one of the exchanges available in StockTrak simulation.
1. Determine if this stock is a growth, defensive, cyclical and/or speculative stock. Similarly determine if the company that issued this stock is a growth, defensive, cyclical and/or speculative company.
2. Using any financial data provider (Morningstar, Yahoo Finance, Google Finance, etc), find/calculate the last 5 years of FCFE for the company. Determine the expected growth rate of the FCFE in the future.
3. Find the weekly stock price data and the value of the index of the stock exchange applicable for this stock for the last five years. Calculate the beta of the stock, and use CAPM to determine the required return on the stock.
4. Using the information compiled in parts 1 and 2, calculate the value of equity for the company and the intrinsic value of the stock. Is it under- or overvalued and by how much?
5. Find 3 close competitors of your company and for all of them (including your company) calculate P/E, P/BV, P/CF and P/Sales ratios. Compare and contrast your company's price multiples to its competitors and determine if its under- or overvalued.
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