Question 2 - [Total: 40 Marks]

You are considering investing in Marriott International (NASDAQ: MAR). You will need to make an investment recommendation based on the market and your theoretical value of Marriott International. This question is designed such that your answers in this question should build a company and industry profile of Marriott International and help make your final recommendation. Any assumptions that you rely upon should be clearly stated in your answer.

1. What is the current price (any date from Aug 2020) of ordinary common shares of Marriott International (NASDAQ: MAR)? Using an appropriate chart as reference, describe how this price has evolved over the past 3-years, and compare the performance of Marriott International to an appropriate benchmark index (15 Marks).
2. Valuation multiples are often used to compare companies quickly. Identify an appropriate valuation multiple/ratio and evaluate if the company is over or under valued using relative valuation. What are the reasons you picked the multiples that you did and how did you conclude that Marriott International is over or under valued? (5 marks).