Discussions in this course are set up as Literature Review. You are supposed to compare and contrast the opinions of the authors of the articles provided in the weekly Learning materials, present the important information, data (if applicable), statistics (if applicable) to support your conclusions. It is important that the Literature review is written in your own words with small quotes from the articles. All quotes must have references in accordance with the 7th Edition APA Style.
Use the company you selected for the class assignments. Complete a case study of relative valuation. Analyze the value of your subject company compared to average industry [e.g., XLF] and cohort (2-4 comparable companies) values.
Title your thread using your Company Symbol and your Name.
1. Present Relative Valuation (Valuation by Comparables) –
Use appropriate relative valuation models and conduct a Valuation by Comparables of the company that you selected to study. Select a meaningful Return Ratio and Price Ratio or multiple. Consider using the most recent 3-5 annual or quarterly periods with mean/median and standard deviation. [Keep in mind you have a worksheet from Analysis Paper 1 that can be used/revised.]
How do you interpret and explain the results? Why did you choose the ratios used for the comparison?
2. Present Enterprise Value and EV / EBITDA Ratio –
Post the results of the Enterprise Value of the company that you have selected, along with its EV/EBITDA ratio, P/E Ratio, and PEG Ratio, along with those of a few competitors. Use normalized values – mean/median and standard deviation for industry [e.g., XLF] and cohort.
What do the results mean?
3. Most Important Things Learned –
What are the most important things you learned from the study of this week’s readings and assignments?