Research 3 companies within their industry by reading CNBC, Marketwatch, WSJ.com, Dealbook (NY Times), RealClearMarkets.com, SeekingAlpha.com, Barrons, The Economist, Zero Hedge and Marketfolly. Students will use MorningStar to gather metrics/key ratios:

3 Companies:

LVMH LVMUY: http://financials.morningstar.com/ratios/r.html?t=LVMUYion=usa&culture=en-US

Kering SA PPURF: http://financials.morningstar.com/ratios/r.html?t=PPRUFion=usa&culture=en-US Hermes HESAF: http://financials.morningstar.com/ratios/r.html?t=

HESAFion=usa&culture=en-US

1. Profitability (OM, NM, ROE, ROIC)

a. Do margins seem high for the industry as a whole?

b. Analyze the profitability trends.

c. Which company seems to be the most profitable and why?

2. Efficiency (DSO, DSI, FAT, AT)

a. Which metrics seems most important for your industry?

b. Analyze the efficiency trends.

c. Which company seems to be the most efficient and why?

Valuation (P/E, P/B, P/S, P/CF vs Industry vs SP500)

a. Do the valuation ratios seem high relative to history and the SP500?

b. Analyze the valuation trends.

c. Which company do you think are the cheapest and most expensive? Use your own analysis, insights in combination with the metrics

How would you allocate $100 to invest amongst the 3 companies?