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Please Suggest me a Company Name to complete the following Project for Business Analysis & Valuation, also guide on how to go about it. Thanks

Please Suggest me a Company Name to complete the following Project for Business Analysis & Valuation, also guide on how to go about it. Thanks

Business Analysis & Valuation Project

The objective of this project is to apply financial statement analysis techniques in a typical (equity) investment decision-making context. You should assume that you are required to make an investment recommendation to a fund manager. The fund manger wishes to add a stock to a diversified portfolio. The investment manager has a strategy of maximizing investor returns over the long term.

Consistent with the course objectives, the project is an essential part of the course and aimed at developing your understanding of, and practical skills in financial statement analysis and valuation. It is also designed to enhance teamwork, and analytical and communication skills. To maximize the benefits of the project, you are required to progressively complete the project as the techniques are examined in the course.

The project comprises two components.

(1) an individual industry, company strategy and accounting analysis, and

(2) a detailed group project report.

You will choose a company that has been listed on a stock exchange for at least 3 years. You do not have to choose a company that is listed on the Australian Securities Exchange (ASX). You should pick a company that you think you and your group will enjoy analysing. You may not choose any of the following companies:

Qantas Airways Limited

Virgin Australia Limited

Woolworths Limited

JB Hi Fi Limited

We strongly recommend that you avoid choosing a bank or financial institution as they are typically valued in a different manner to the approach we highlight in the course. Similarly we recommend that you avoid a resources based company.

Upload your list of group members and selected company onto the course Moodle page.

Obtain and commence analysis of the financial reports of your chosen company.

Progressive Analysis (Weeks 3-12)

You need to progressively analyse your selected company using the strategic, accounting, financial, and prospective analysis tools identified in the course. Your analysis should cover the most recent 5 years. As per the course outline, the timetable for completion of each stage is as follows:

Week 3/4 - Strategic Analysis

Week 5 - Strategic & Accounting Analysis

Week 6 - Strategic, Accounting and Financial Analysis

Week 7 - Strategic, Accounting, Financial, and Prospective (Forecast) Analysis

Week 8/9/10 - Strategic, Accounting, Financial, and Prospective (Forecast & Valuation) Analysis

You should regularly consult with your group members in completing these tasks to ensure consistency in the syndicate's approach across the selected companies.

Industry, Company and preliminary Accounting Analysis (due by 3pm on Monday 11 April -the start of Week 6)

You must submit your individual industry, company and accounting analysis on the Turnitin link that will be on the course Moodle page. In you seminar in week 6, each student needs to submit a written copy of the report you submitted on Turnitin. You do not have to specifically calculate any accounting adjustments for this hand-in. This report aims to put your project on track and help you identify problems ahead.

The report must not exceed 6 pages (excluding the assignment submission page) and must be typewritten with at least 1.5 line spacing and 12 font size.

The report must address the following questions (you do not have to write out each of these questions, or necessarily answer them in order):

A. Industry Analysis

1. What are main products in this industry?

2. What is the most likely prospect for the industry in next year, in next five years, and in the long run? And why do you think this prospect is the most likely?

3. Who are the main players in this industry? And what are their positions in the industry?

B. Company Analysis

4. What is the history of your company?

5. What are the competitive advantages of your company?

6. What are the strengths, weakness, opportunities and threats to this company?

7. What is the most likely prospect for this company in next year, in next five years, and in the long run? And why do you think this prospect is the most likely?

8. How did the company perform in the last three years? What were the revenues, expenses, and cash flows?

9. Do the managers have any incentives to manipulate earnings?

10. Do you find any evidence of earnings manipulations in the financial statements?

11. Do you make any adjustment to the accounting numbers? If yes, explain how you estimate and make the adjustments.

Full Group Project Report (due on 20 May)

Each group will submit a comprehensive project report on or before Friday 20 May 2016. This report will summarize your analyses and findings, and make recommendations to potential investors. Consistent with the approach used by professional equity analysts, your report should include the following:

Executive Summary

Provide a brief overview of your analyses and findings. (Should not exceed 500 words.)

Introduction to the Company and the Industry

Briefly describe the industry and its prospect - How does it make its money?

Discuss the company's corporate strategy and prospect.

Accounting and Financial Analysis

Summarize the accounting analysis

Analyse the company's performance, financial strengths and inherent risks using financial analysis.

Conduct both time-series and cross-sectional analysis.

Use graphs and tables in the main text to support your analysis

Forecasts and Valuations

Forecast the company's performance, and clearly explain why you make such forecasts.

Use graphs or tables to in the main text illustrate your forecasts

Estimate the cost of capital for the company.

Determine the value of the company.

Perform sensitivity and/or scenario analysis.

Conclusion and Recommendation

Summarise your findings, and give a recommendation of whether your company represents a 'strong buy', 'buy', 'hold' or 'sell' or 'strong sell' recommendation.

Appendices

Include any documentation supporting your findings.

All analysis must be based on the original annual reports for the last five years that your target company produces. All analysis and calculations must be your own. In addition, you are responsible for designing the structure of the report. Where ratios or other output are deemed not to be original, zero marks will be allocated to that section.

The report must not exceed 15 pages. Each report should have key calculations, namely financial analysis and a summary of your primary valuation model. You may also include in the appendix additional, in-depth analysis to any section in your report. To avoid plagiarism, correct references are required but will not be included in the word limit.

The syndicate report must be typewritten with 1.5 line spacing and appropriately referenced. Use the "normal" margin setting in MS Word (i.e 2.54cm). Each group must complete the cover page (which includes the Statement of Group Members' Contribution") and ensure all group members sign the statement and submit it with the project report. Group reports submitted without this completed statement will not be marked. The cover page is not included in the page limit. Everything else (including the Executive Summary and the Appendices) is included in the page limit.

You must submit a hard copy of your report by the submission deadline. You will be provided with the submission location closer to the submission date.

Successful Group Work

It is important that you work with your syndicate membership wisely and set realistic tasks and meeting times. Ensure each member makes a positive contribution and jointly completes the project within the specified time period. The presentations on "Successful Group Work" that we include early in the semester guide you on this. Use the structure of the course, weekly tasks and time allowed in seminars to achieve a successful project outcome. Feedback from past students who have successfully completed the project speaks highly of the learning experience in terms of developing technical and interpersonal skills.

Despite the project's potential benefits, occasionally a group member fails to perform satisfactorily. Such instances are an opportunity for you to exercise your group management skills that we highlight for you in "Successful Group Work". Left unaddressed, the problem can lead to stress and a sub-standard mark for all syndicate members.

If you encounter such a member, it is the group's responsibility to deal with the issue in a timely manner. We will provide you with material on what constitutes positive group participation. Often a simple verbal warning is all that is required early in the course to ensure their deviant behaviour changes. If this fails, you should issue a written warning, provide them with an opportunity to remedy but also advise that the group will take action. If the written warning is unsuccessful you have two options:

Expel the member from the syndicate and notify the instructor accordingly or

Request a peer assessment after the final presentations. Students with a clear, adverse peer assessment against them that is substantiated by evidence of prior warning from the group, will be substantially penalized for their poor contribution.

Expelled members can still continue to complete the project but will be required to find another company (subject to the Course Coordinator's approval) in addition to their original company for the comparative analysis.

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