Question:
- The only question here that i want help with is Step 2 Part one which is (Time series analysis for the most recent 3 years (2018 – 2019 – 2020)
Summer 2021 FINC303 – 2101 Group Project (20%) Stock Valuation
This group is Assigned company PEPSICO.
Each group will start finding data on the assigned company you are asked to evaluate.
The following links can help you find data about the companies you are assigned as well as the company’s competitors;
http://www.morningstar.com/
Project Objective: To price the stock of a company using the dividend discounting model we learned in class. (You should submit the Excel sheet you prepared to value your company)
Step 1: Conduct Macro-economic and Industry Analysis. (2%)
Top-Down Analysis:
- Major macroeconomic trends affecting industry
- Conduct SWOT, Porter’s Five Forces model and PESTEL analysis.
Company Analysis:
c. Products and Services d. Growth Opportunities
Step 2: Conduct Ratio Analysis for the Company (5%)
We need to see a full analysis of the following;
- Time series analysis for the most recent 3 years (2018 – 2019 – 2020)
- Cross sectional analysis with one major competitor as well as the industry for the most recent year.
(You need to calculate the ratios by yourself and find the story behind each significant change in any of the calculated ratios) (Check the Appendix)
a. Most important Liquidity Ratios (Current Ratio, Quick Ratio)
b. Most important Profitability Ratios (GPM, NPM, ROA, ROE, EPS)
c. Most important Activity Ratios (Inventory Turnover, Asset Turnover)
d. Most important Debt Ratios (Debt to Equity Ratio, Times Interest Earned)