Investment
Group Assignment (Company Valuation Assignment) Company: TRAPHACO JOINT-STOCK CO (Ticker on HCMC stock exchange: TRA)
Submission Date: Week 10, 26 April 2013 [Syndicate (Group) Assignment – minimum 3/maximum 5 students per syndicate]
For this assignment you are required to use publicly available information to analyse a publicly listed company and prepare a report which provides an assessment of the company’s current position and future prospects, and which incorporates the use of a range of valuation models to arrive at an estimate of the company’s share price. To provide structure the assignment should include the points listed below:
The final submission should include:
1. An evaluation of the company’s brief recent history and financial performance, over time and, where appropriate, relative to their peer group, including the DuPont ROE approach. An analysis of the current issues facing the company, the industry it operates in, and estimate the impact of the issues on the company’s future earning.
The first section explains the impact of the business environment on the inputs (variables) needed in the valuation models to be estimated. You do not maximise your marks if you cut and paste material without any analysis.
2. Estimation of the value of the company’s shares using:
* Dividend valuation model (DDM):
You are expected to use the CAPM to estimate the discount rate needed in the DDM. * Also, you are expected to estimate the beta needed. You cannot pick a beta value estimated elsewhere (e.g., Bloomberg) and use it in your report. Attach details of your work as an appendix. * Adjust your raw beta using appropriate methodology * It is important to explain the data utilised in estimating the beta. * Also explain the proxies you use for the risk-free rate and the market portfolio. Indicate any advantages or disadvantages if there are any. * The estimation of the expected market
Submission Date: Week 10, 26 April 2013 [Syndicate (Group) Assignment – minimum 3/maximum 5 students per syndicate]
For this assignment you are required to use publicly available information to analyse a publicly listed company and prepare a report which provides an assessment of the company’s current position and future prospects, and which incorporates the use of a range of valuation models to arrive at an estimate of the company’s share price. To provide structure the assignment should include the points listed below:
The final submission should include:
1. An evaluation of the company’s brief recent history and financial performance, over time and, where appropriate, relative to their peer group, including the DuPont ROE approach. An analysis of the current issues facing the company, the industry it operates in, and estimate the impact of the issues on the company’s future earning.
The first section explains the impact of the business environment on the inputs (variables) needed in the valuation models to be estimated. You do not maximise your marks if you cut and paste material without any analysis.
2. Estimation of the value of the company’s shares using:
* Dividend valuation model (DDM):
You are expected to use the CAPM to estimate the discount rate needed in the DDM. * Also, you are expected to estimate the beta needed. You cannot pick a beta value estimated elsewhere (e.g., Bloomberg) and use it in your report. Attach details of your work as an appendix. * Adjust your raw beta using appropriate methodology * It is important to explain the data utilised in estimating the beta. * Also explain the proxies you use for the risk-free rate and the market portfolio. Indicate any advantages or disadvantages if there are any. * The estimation of the expected market