What you have to do

Each group is required to submit an analyst report where the group members study one company from Qatar and issue a recommendation for its stock. The recommendation is either to buy, hold, or sell. To come to the recommendation, the students have to perform an economy outlook analysis, an industry analysis to evaluate any opportunities and risks. Students should then perform an overview and a SWOT analysis of the chosen company and price its stock.

In summary, the project is to address the following points:

• The economy overview and outlook
• The analysis of the industry in which the company operates.
• The chosen company overview.
• A SWOT analysis of the company.
• The pricing of the company using one of the models covered in class (Dividend Discount Model, relative valuation).
• The recommendation.

Your report should be informative and professional.

The pricing

Use one of the following models. Calculation should be conducted on excel sheet.

1. Relative Valuation: Firm multiples method

Analysts often use the following multiples to value stocks:

1. P / E
2. P / CF
3. P / Sales

EXAMPLE: Based on comparable firms, estimate the appropriate P/E. Multiply this by expected earnings to back out an estimate of the stock price.