You are required to analyse Fortescue Metals Group Limited (FMG.AX) and prepare an investment recommendation report. The report provides an assessment of the company's current position and future prospects, incorporating the use of various valuation techniques to arrive at estimates of the intrinsic value of the company's shares. Your report should make a case for the company's shares to be rated in one of the following ways:

Sell-The shares should be sold, as a materially negative return is anticipated in the next six to 12 months.

Hold- The shares will have neither a materially positive return nor a materially negative return in the next six to 12 months.

Buy- The shares should be bought, as a materially positive return is expected in the next six to 12 months.

Evaluate the relative historical financial performance of the company among its peers identify the firm's competitors and discuss why they have been selected identify, and explain the relevance of, five financial ratios of your choice (not to include ROE, Net Profit Margin, Total Asset Turnover or Financial Leverage) for the company and its peers (potential ratios to include Return on Assets, NPAT, Debt to Equity, Gross Margin, Operating Leverage, EPS Growth, Interest Cover Ratio) explain the performance of the company compared to its peers using this analysis analyse and explain the reasons for changes in these ratios over the past five years and compared to the average of the past five years do not simply describe the changes in the ratios

Analyse the company' s/industry's current issues and explain the effect of these issues on the company's future earnings a) At the Macroeconomic Level general factors that apply for the industry (GDP, employment, growth of the industry, regulation, global factors, supply, demand, world commodity prices, etc.) b) At the Microeconomic Level the company- and industry-specific factors (operation, financials, objectives, competition, etc.) c) As a SWOT analysis detail the Strengths, Weaknesses, Opportunities and Threats to the company d) As either a PESTEL or a Porter analysis analyse the company's position in its industry using one of the above techniques