The official name for this university subject is -Financial statement analysis-. A sample assignment has been attached below to show what is expected. AUSTRALIAN UNIVERSITY.
I have partially done forecasting (however do not have reasoning done for it), and attempted to make models work for valuations but I'm not getting a reasonable share price. Have attached Excel spread sheet.
The assignment is to write a report about Australian wine production company called -Treasury Wine Estates-. Main point of research is the firms annual reports.
1. Forecasting: Key ratios should be explained while other ratios not. indicated on marking rubric. assumptions for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity: need to be explained.
I have partially completed this - please refer to excel file. Also I am forecasting from 2018 - so the first year of forecast is going to be 2019.
2. company valuation and calculations of cost of debt and cost of equity need to be explained. Valuation of 4 models. WACC and CAPM.
4 models: (Abnormal Operating Earnings Model (RIM Modified), Discounted Cashflow model and Discounted dividend model).
3. Adjusting the initial forecast assumptions to reflect your optimistic and pessimistic outcomes for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity. Correctly recalculates the estimated share price value from the residual operating income model.
4. management consultant advice: Provides a convincing, detailed insight on the potential opportunities and challenges for the firm to maintain or improve current profitability. The discussion explicitly refers to the sensitivity analysis and the key factors that have significant impact on valuation.
- marking rubric.
- sample asgmt of what is expected.
- Valuation models and forecasting excel file.
- Additional guidance doc -please read from INDIVIDUAL ASSIGNMENT PART B “