FINA 4370 Final Project
Your final project will be an valuation of a publicly traded company. Similar to other projects you have done in the course, the project will be group-based (i.e., one per group and group members are assigned equal grades). Your goal is similar to a sell side analyst who often comes up with a price target.
You can choose which company you would like to evaluate. One useful source of information is the EDGAR company filings database maintained by the SEC. However, you have the choice to complement this information source using other sources. The information needs to be credible. Proper bibliography and acknowledgment are a must. (website: https://www.sec.gov/edgar/searchedgar/ companysearch.html and search for your firm)
You should apply extensively what we have learned throughout this course and try to integrate these into your model. Your final deliverable will consist of a double-spaced writeup and the Excel model. Your writeup should describe clearly the thoughts and subjective decisions that go into your Excel model. For instance, you should explain why you select a particular technique to evaluate a specific product line of Apple. Please pay attention to the details of the financial statements and discussions used in the 10K. Even for companies that are not producing tangible products, they have their distinct lines of business and the revenues from these different product lines are generally reported or discussed separately. You should have an estimate of the current stock price.
There are a few criteria against which the project is evaluated:
1. How far is your estimated stock price from the consensus estimate on the street.
2. How well you have integrated the knowledge from the class.
3. How much attention to detail you have paid to materials mentioned in the 10-K.
4. How extensively you have utilized information from other sources.
5. How logical your reasoning is/how reasonable are your assumptions?
6. Professionalism of presentation (you should have seen some sell side analyst reports by now)
7. What are the drivers of how far your estimate is away from the street consensus. Can you provide a more detailed discussion of these factors? What are the recent events/developments that might influence these factors and their roles in determining the stock price?
Overall I am looking for your best group effort. While there is not an exact right or wrong in these modeling exercises, it is relatively easy to see through good vs. poor effort.
Good luck. Your group should inform me about the company you are evaluating by Monday, April 26. Please keep the company name to yourself, as two groups can evaluate the same company by coincidence.