Equity research paper Bata
Table of Contents
EXECUTIVE SUMMARY:
This report gives an objective analysis and forecasting on the Stock of Bata Shoe company- The market leader in the tannery footwear in Bangladesh. The purpose of this report is to analyze the investment environment and to forecast an expected return on Bata stock. As a proper equity research report it has many parts.
The report starts with a very brief overview of Bata Company and the performance of its stock in the past year. This deals with EPS, P/E ratio and Historical data and return on Bata stock. After this the report delves into a broad discussion on macroeconomic environment of Bangladesh. After discussing the change in the key indicators, an analysis on the future uncertainty of the economic environment of Bangladesh is given. How this environment affects the investors decision is the reason for this discussion.
The next part briefly discusses the tannery industry in Bangladesh. Who are the major players and what is the future industry growth prospects is discussed. Then we delve into the company analysis or competitive analysis of BATA Shoe. The sales growth and income potential of the company is discussed. Also the various ratios are analyzed to give us a proper overview of the company performance.
The final part focuses on the forecasts about the return on Bata stock, taking into account the different asset pricing models. The CAPM is used to calculate the Beta of the stock using five years of monthly historical data of Bata stock. Additional Performance measures like Sharpe and Jensen’s alpha are used. Bloom’s formula is also used to forecast returns.
Estimates and projections herein are our own and are based on assumptions that we believe to be reasonable. Information presented herein, while obtained from sources we believe to be reliable, is not guaranteed either as to accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale
EXECUTIVE SUMMARY:
This report gives an objective analysis and forecasting on the Stock of Bata Shoe company- The market leader in the tannery footwear in Bangladesh. The purpose of this report is to analyze the investment environment and to forecast an expected return on Bata stock. As a proper equity research report it has many parts.
The report starts with a very brief overview of Bata Company and the performance of its stock in the past year. This deals with EPS, P/E ratio and Historical data and return on Bata stock. After this the report delves into a broad discussion on macroeconomic environment of Bangladesh. After discussing the change in the key indicators, an analysis on the future uncertainty of the economic environment of Bangladesh is given. How this environment affects the investors decision is the reason for this discussion.
The next part briefly discusses the tannery industry in Bangladesh. Who are the major players and what is the future industry growth prospects is discussed. Then we delve into the company analysis or competitive analysis of BATA Shoe. The sales growth and income potential of the company is discussed. Also the various ratios are analyzed to give us a proper overview of the company performance.
The final part focuses on the forecasts about the return on Bata stock, taking into account the different asset pricing models. The CAPM is used to calculate the Beta of the stock using five years of monthly historical data of Bata stock. Additional Performance measures like Sharpe and Jensen’s alpha are used. Bloom’s formula is also used to forecast returns.
Estimates and projections herein are our own and are based on assumptions that we believe to be reasonable. Information presented herein, while obtained from sources we believe to be reliable, is not guaranteed either as to accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale
References: -www.stockbangladesh.com Introduction, Retrieved August 25, 2009, from BATA SHOE Ltd. Retrieved April 1st , 2011, from Scribd: http://www.scribd.com/doc/9477601/Equity- Information Retrieved, BRAC EPL Stock Brokerage Ltd, Research Methods