Fundamental Analysis Fundamental Analysis The process of gathering information‚ organising it into a logical framework and then using it to determine the underlying value of a share. Intrinsic Value The underlying or inherent value of a stock as determined through fundamental analysis. The entire concept of stock valuation is based on the belief that all securities possess an intrinsic value that their current market or trading value must approach over time. Intrinsic Value Depends
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(A) The payback is 35‚000/5‚000= 7 years Computation of the NPV : 15 NPV= -35‚000 + Σ 5‚000 / ( 1 + 12%)^ 15 i=1 NPV = $- 947. 67 Computation of the IRR : 15 0= -35‚000 + Σ 5‚000 / ( 1 + IRR)^ 15 i=1 IRR= 11.49% The NPV of this project is negative and the IRR is lower then the Cost of Capital (12%) Rainbow products shouldn’t go for
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19/02/2008 Source: Inditex Website Brand Quantity Zara 1‚134 Pull and Bear 520 Massimo Dutti 426 Bershka 510 Stradivarius 383 Oysho 293 Zara Home 205 Kiddy ’s Class/Skhuaban 230 TOTAL 3‚701 Inditex‚ as stated on its website‚ is one of the world’s largest fashion distributors: nearly 6 million of items were put on the market in 2006 (Figure 1). With eight sales concepts Zara‚ Pull and Bear‚ Massimo Dutti‚ Bershka‚ Stradivarius‚ Oysho‚ Zara Home and Kiddy ’s Class they boast nowadays 3‚701
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PROBLEM 8-1 Net Profit Margin | = | Net Income Before Minority Share of Earnings and Nonrecurring Items | | | Net Sales | 2011 | | 2010 | $52‚500 | | $40‚000 | $1‚050‚000 | | $1‚000‚000 |
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Financial Accounting Company Financial Statement Analysis Assignment: I. Company’s Business and Economic Environment Gap Inc.‚ founded in 1969 in San Francisco‚ CA‚ is a clothing and accessories retailer for men‚ women and kids. It started as a single store‚ and nowadays operates more than 3‚000 stores with more than 130‚000 employees worldwide. Gap Inc owns the following brands: The Gab‚ babyGap‚ GapKids‚ and GapBody‚
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undertake a full company analysis and share price estimate for the GAP. The case report should be presented as a formal report document of about 8 pages (not including supporting spreadsheets) and all students must sign the final report affirming that they made an equal contribution. To undertake the project you are provided with: i. A handout that details the background‚ analyst recommendations and financial data of the GAP ; ii. Chapter 6 of Palepu et al.‚ “Business Analysis and Valuation” available
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Introduction A performance analysis has been carried out on a food manufacturing company in this report‚ Bangas Limited (listed at Dhaka Stock Exchange). The analysis had been carried out over a five years time period from 2003 to 2008. The designated company given to us is part of the food and allied industry. It is a reputed company and had been part of the stock exchange for a long time. Hence analyzing such a company will help us to understand its financial position over a period of time selected
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Chapter 3 FINANCIAL STATEMENT ANALYSIS Copyright ©2015 Pearson Education‚ Inc. All rights reserved. 2-1 Financial Statement Analysis • Investors often use accounting statements to: – Compare the firm with itself by analyzing how the firm has changed over time – Compare the firm to other similar firms using a common set of financial ratios Copyright ©2015 Pearson Education‚ Inc. All rights reserved. 2-2 Why are ratios useful? • Ratios standardize numbers and facilitate
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Valeant’s Accounting Analysis Brief Summary Valeant Pharmaceuticals‚ headquartered in Quebec‚ Canada‚ is a multinational company. It sells generic pharmaceuticals and OTC products. After several significant acquisitions and mergers‚ Valeant became the most valuable company in Canada. However‚ Valeant was investigated due to manipulation of drug price. It is being investigated by SEC for possibility that it booked imaginary sales and account receivables. As a result‚ its stock price has drastically
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FSABV: Recognize the Industry In view of the fact that opportunities and constraints tend to be different across industries‚ companies in different industries tend to make different investment‚ dividend‚ and financing decisions. Accordingly‚ firms in different industries exhibit different financial characteristics‚ and‚ hence‚ report different financial ratios. For example‚ “old economy” businesses with large amounts of tangible assets may have higher leverage ratios. Service or trading firms may
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