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You are considering investing in BHP Group Ltd (ASX: BHP). You will need to make an investment recommendation based on your market and theoretical value

You are considering investing in BHP Group Ltd (ASX: BHP). You will need to make an investment recommendation based on your market and theoretical value of BHP. This question is designed such that your answers in this question should build a company and industry profile of BHP and help make your final recommendation. Any assumptions that you rely upon should be clearly stated in your answer. i)Undertake an industry and company analysis for BHP (see supplementary resources on Blackboard and textbook chapter listed in unit outline). This question asks you to consider the factors which influence BHPs share price. (15 Marks). ii)What is the current price (any date from March 2019) of ordinary common shares of BHP Group Ltd (ASX: BHP)? Using an appropriate chart as reference, describe how this price has evolved over the past 3-years, and compare the performance of BHP to an appropriate benchmark index (15 Marks). iii)What has been the main driver(s) BHPs share price movement over the past 3 years? What do you think will impact the share price in the future? (7 Marks). iv)Using an appropriate technical analysis tool introduced in lecture 4, predict what the share price of BHP will be at the end of 31st September 2019 (5 Marks). If your prediction using technical analysis is valid, what does this mean for the concept of market efficiency? (5 Marks). v)What types of present valuation methods would be appropriate to value BHP given the information about the company? In your choice, provide a theoretical and applied rationale as to why you would pick this model for BHP. Hint: consider the types of valuation models you can use given the information that is available. (7 Marks). vi)Valuation multiples are often used to compare companies quickly. Identify at least two appropriate valuation multiples/ratios 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 BHP is over or under valued? (8 marks). vii)What would your recommendation be with regards to buying or selling these shares right now? Justify your answer. (3 Marks) BHP(2018 annual report )

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