write a short report discussing the valuation of your selected firm and competitor. Note if the current price is very close to ?Estimated share price based on TTM P/E and Earnings past 12 months.? This should be very close if not you have likely done something wrong. How does the valuation of your firm compare to that of the competitors based on the P/E ratio? Why might this be the case? How does you firm?s current price compare to the estimated price using the industry and sector P/E?s compare both for the TTM and estimated year end? Is it higher or lower? Why might that be (provide one rational reason why)? Based on simple analysis which of the two firms (your selected firm and its competitor) appears to be undervalued? Why did you draw that conclusion? What do you suspect is the reason?

Your submission will only need to be a single page to page and a half formatted with single-spaced, Times New Roman, 12 point font. Include a citation for where you retrieved the data and the date retrieved. A table following the example must be included in your submission but is not considered as part of the page to page and a half write-up. Get to the point in your write-up. There is no need for extra ?baggage.?

MBAA 518 - Managerial Finance 1 In Module 8, you will submit your Final Paper: For your final project you will write a short concise stock recommendation report for a firm in which you would recommend as a buy. You are correct that this is not an investments class but as you take a look at the examples provided you will see the application of various topics studied in this course. You will see ratios discussed, discounted cash flow valuation applied, growth opportunities analyzed and ultimately whether or not the investment opportunity is one that should be pursued. This investment opportunity and determining the risk, reward and valuation all are discussed throughout this course. Your paper will be in the range of 2 to 3 pages formatted similarly to the examples provided. References must be included and those should be referenced using the latest APA guidelines. The examples are not all the same but there are some common themes. Most include a brief discussion of the industry and industry outlook and where the firm being analyzed stands and performs in the industry. You will not that ratio analysis is often used but the ratios may vary by industry. In other words the key ratios used to analyze firms in industry \"A\" are not the same ratios used to analyze firms in industry \"B\". Valuation is often considered using more than one method. Discounted cash flows may be used in conjunction with an appropriate ratio (again the ratio likely varies across industry). How does the current share price compare to what your analysis values the stock? Risk, growth potential, payout policy, and other factors are other items that may be discussed in the reports. These all play a role in analyzing a firm and may signal management's belief on future value of the firm. Those may be items you will want to discuss in your report. Do not forget the threats that the firm faces as well. There is no firm that does not face competition. Those threats should be considered. You have been provided with a list of supplemental sources in the course content. This includes sources available through the Hunt Library one of which is S&P Net Advantage. S&P Net Advantage provides some very useful industry reports which may help you determine how firms in a particular industry are analyzed. There are other sources you can feel free to use as well. The big question is why buy the stock you have selected. You do not have a lot of space to complete this project. You will need to be concise and to the point in your writing. Provide tables as you see fit and other graphs/charts that support you position. Note, the examples may include recommendations to buy, sell, or hold. Your report must be for an opportunity you believe is a buy. Note on the examples: Value Line has a very unique format. The data is there is some discussion of key factors. The other example(s) better reflect what your submission should be similar to. When submitting your Word document using the following naming convention: lastname_firstinitial_MBAA518_firmticker_final_project. (example: Jones_M_MBAA518_firmticker_final_project.docx) Font size should be no smaller than 10 nor larger than 12 point font. Headings should be bold (not a larger font). Again, be concise; you do not have room for a lot of \"fluff.\" May 2015 MBAA 518 - Managerial Finance Examples can be found at these links: ValueLine.MSFT Mergent.WebReports.MSFT Please note that these links are through the ERAU Hunt Library, so you may need to log in with your ERNIE username and password. May 2015 2 MBAA 518 - Managerial Finance 1 In Module 8, you will submit your Final Paper: For your final project you will write a short concise stock recommendation report for a firm in which you would recommend as a buy. You are correct that this is not an investments class but as you take a look at the examples provided you will see the application of various topics studied in this course. You will see ratios discussed, discounted cash flow valuation applied, growth opportunities analyzed and ultimately whether or not the investment opportunity is one that should be pursued. This investment opportunity and determining the risk, reward and valuation all are discussed throughout this course. Your paper will be in the range of 2 to 3 pages formatted similarly to the examples provided. References must be included and those should be referenced using the latest APA guidelines. The examples are not all the same but there are some common themes. Most include a brief discussion of the industry and industry outlook and where the firm being analyzed stands and performs in the industry. You will not that ratio analysis is often used but the ratios may vary by industry. In other words the key ratios used to analyze firms in industry \"A\" are not the same ratios used to analyze firms in industry \"B\". Valuation is often considered using more than one method. Discounted cash flows may be used in conjunction with an appropriate ratio (again the ratio likely varies across industry). How does the current share price compare to what your analysis values the stock? Risk, growth potential, payout policy, and other factors are other items that may be discussed in the reports. These all play a role in analyzing a firm and may signal management's belief on future value of the firm. Those may be items you will want to discuss in your report. Do not forget the threats that the firm faces as well. There is no firm that does not face competition. Those threats should be considered. You have been provided with a list of supplemental sources in the course content. This includes sources available through the Hunt Library one of which is S&P Net Advantage. S&P Net Advantage provides some very useful industry reports which may help you determine how firms in a particular industry are analyzed. There are other sources you can feel free to use as well. The big question is why buy the stock you have selected. You do not have a lot of space to complete this project. You will need to be concise and to the point in your writing. Provide tables as you see fit and other graphs/charts that support you position. Note, the examples may include recommendations to buy, sell, or hold. Your report must be for an opportunity you believe is a buy. Note on the examples: Value Line has a very unique format. The data is there is some discussion of key factors. The other example(s) better reflect what your submission should be similar to. When submitting your Word document using the following naming convention: lastname_firstinitial_MBAA518_firmticker_final_project. (example: Jones_M_MBAA518_firmticker_final_project.docx) Font size should be no smaller than 10 nor larger than 12 point font. Headings should be bold (not a larger font). Again, be concise; you do not have room for a lot of \"fluff.\" May 2015 MBAA 518 - Managerial Finance Examples can be found at these links: ValueLine.MSFT Mergent.WebReports.MSFT Please note that these links are through the ERAU Hunt Library, so you may need to log in with your ERNIE username and password. May 2015 2 MBAA 518 - Managerial Finance 1 In Module 8, you will submit your Final Paper: For your final project you will write a short concise stock recommendation report for a firm in which you would recommend as a buy. You are correct that this is not an investments class but as you take a look at the examples provided you will see the application of various topics studied in this course. You will see ratios discussed, discounted cash flow valuation applied, growth opportunities analyzed and ultimately whether or not the investment opportunity is one that should be pursued. This investment opportunity and determining the risk, reward and valuation all are discussed throughout this course. Your paper will be in the range of 2 to 3 pages formatted similarly to the examples provided. References must be included and those should be referenced using the latest APA guidelines. The examples are not all the same but there are some common themes. Most include a brief discussion of the industry and industry outlook and where the firm being analyzed stands and performs in the industry. You will not that ratio analysis is often used but the ratios may vary by industry. In other words the key ratios used to analyze firms in industry \"A\" are not the same ratios used to analyze firms in industry \"B\". Valuation is often considered using more than one method. Discounted cash flows may be used in conjunction with an appropriate ratio (again the ratio likely varies across industry). How does the current share price compare to what your analysis values the stock? Risk, growth potential, payout policy, and other factors are other items that may be discussed in the reports. These all play a role in analyzing a firm and may signal management's belief on future value of the firm. Those may be items you will want to discuss in your report. Do not forget the threats that the firm faces as well. There is no firm that does not face competition. Those threats should be considered. You have been provided with a list of supplemental sources in the course content. This includes sources available through the Hunt Library one of which is S&P Net Advantage. S&P Net Advantage provides some very useful industry reports which may help you determine how firms in a particular industry are analyzed. There are other sources you can feel free to use as well. The big question is why buy the stock you have selected. You do not have a lot of space to complete this project. You will need to be concise and to the point in your writing. Provide tables as you see fit and other graphs/charts that support you position. Note, the examples may include recommendations to buy, sell, or hold. Your report must be for an opportunity you believe is a buy. Note on the examples: Value Line has a very unique format. The data is there is some discussion of key factors. The other example(s) better reflect what your submission should be similar to. When submitting your Word document using the following naming convention: lastname_firstinitial_MBAA518_firmticker_final_project. (example: Jones_M_MBAA518_firmticker_final_project.docx) Font size should be no smaller than 10 nor larger than 12 point font. Headings should be bold (not a larger font). Again, be concise; you do not have room for a lot of \"fluff.\" May 2015 MBAA 518 - Managerial Finance Examples can be found at these links: ValueLine.MSFT Mergent.WebReports.MSFT Please note that these links are through the ERAU Hunt Library, so you may need to log in with your ERNIE username and password. May 2015 2 ERAU, MBAA 518 Carlos Disla Activity 4.5; Valuation of Stock using PE ratios For this assignment on the valuation of stock, I selected Dunkin Donut and Krispy Kreme. Both are publicly traded firms and a major competitor in the \"restaurant\" industry. The selected firms were obtained for the trailing twelve-month P/E ratio for the firm, industry, and sector was from Reuters (2015) with an annual report (2013) for both companies. 8/31/2015 Firm Stock Symbol Selected Firm Dunkin Donut DNKN 47.82 Major Competitor Starbucks KKD 15.85 Firm Stock Symbol Selected Firm Dunkin Donut DNKN 5.81 5.63 162.9124 264.06 110.56 Major Competitor Starbucks KKD 3.522 0.8805 112.1757 160.07 67.20 Firm Current Firm P/E Share Price Ratio (TTM) Firm P/E High Last 5 yrs. Firm P/E Low Last 5 yrs. Industry P/E Ratio (TTM) Sector P/E Ratio (TTM) 28.04 35.18 25.64 45.45 19.03 31.85 7,107.54 20.96 45.45 19.08 Earnings past Mean Year Estimated share price based 12 months End Earnings on TTM P/E and Earnings (TTM)* Estimate past 12 months Mean Year Estimated share price based Stock Earnings past End Earnings on TTM P/E and Earnings Symbol 12 months* Estimate past 12 months Estimated share price based on Estimated share price based on Industry's TTM P/E and Sector's TTM P/E and Firm's Firm's earnings TTM earnings TTM Estimated share price based Estimated share price based on Estimated share price based on on Firm's TTM P/E and Industry's TTM P/E and Mean Sector's TTM P/E and Mean Mean Year End Earnings Year End Earnings Estimates Year End Earnings Estimates Estimates Selected Firm Dunkin Donut DNKN 5.81 5.63 162.9124 157.87 255.88 107.14 Major Competitor Starbucks KKD 5.84 5.31 186.004 169.12 241.34 101.31 * The 4 most recent quarterly reports, earnings form each report added together. http://www.reuters.com/finance/stocks/overview?symbol=DNKN.OQ http://www.reuters.com/finance/stocks/overview?symbol=SBUX.O