Question
Select a company that (1) is not one of the three principal/largest companies in its industry, and (2) for which financial information for the company
Select a company that (1) is not one of the three principal/largest companies in its industry, and (2) for which financial information for the company and the industry is available for the current year and for three prior years.
Using the most recent financial statements for the company together with other current information, calculate the value of the company using the methods described below. (I decided to use Google Finance data on Starbucks: https://www.google.com/finance?q=NASDAQ%3ASBUX&fstype=ii&ei=KB0dV4HbNafbigK-gpXoCg) Valuation estimated using a non-financial asset
6a. Find the price to employee ratio for the industry. (That is, use the most recent annual reports for two companies in the industry other than the selected company to find the number of employees and the number of shares outstanding. Find the current stock price for those two companies. Dividend the price per share by the employees per share.)
b. Using the price to employee ratio for the industry and the number of employees for the selected company, calculate the value of the selected company.
c. Find the market capitalization of the selected company. (Stock price * number of shares outstanding.)
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