Analyst Report | SkilledProfessors

Build teams of 4 peopleChoose a company that you wish to analyze (eg. a stock from a well-known stock index such as S&P500 or Eurostoxx 600)Prepare an analyst report to evaluate the company
The final result of your report is a recommendation to investors to BUY, SELL or HOLD your stake in the company.Provide the computations of your report in the appendixIf you need to make assumption for the computations, also provide them in the appendix
Present the findings of your analyst report
Design your presentation in a way that it best supports your recommendationLength 10 – 15 minutes
All components of the analyst report have to be written by the team itself (no copy and pasting)Some useful sources (you are free to use other sources as well):
http://finance.yahoo.com http://finance.google.com http://www.ft.com http://www.marketwatch.com http://www.moodys.comCompany Annual Reports
The points 8 – 15 contain all the aspects which should be contained in the report.
Provide an interpretation
Company and Industry Description (short but informative)Market Analysis
12-Months Target Stock Price

Use the Dividend Discount Model (https://www.investopedia.com/terms/d/ddm.asp)
Try to forecast the future dividend development for the next 4 years. You can use past dividend payments (4 years) as an indicator of the growth rate. If no dividends are available, use an approximation by computing the average of dividend payment of the sector or a competitor.For computing the relevant risk-adjusted discount rate, use the Capital Asset Pricing Model: discount rate = r_E = rf + β (E[rm] – rf) (Source: You can find the β– value on finance.google.com).
Assume that the risk free rate rf is zero!For this part you need to use a stock market index (SP500 for US and EUROSTOXX 600 for EU). Compute the average return based on the annual return of the market index.
Stock Price Development over the last 4 years
Also show the development of the respective stock market index or a competitor in comparison
Market-to-Book Ratio
Report the Market Capitalization separately as well (You can find the shares outstanding on http://finance.yahoo.com)Compare with a competitor
Earnings per Share Development over the last 4 yearsHighlights
Select and report important relevant news, which you consider important for the investment decision
Stock return development over the last 4 years
Also show the development of the respective stock market index or a competitor in comparison
Fundamentals Analysis
Show the development over the last 4 years and compare with a competitor
Revenue DevelopmentProfit/Loss DevelopmentNet Profit MarginReturn on AssetsReturn on EquityDebt-to-Equity Ratio (Book Values)
Company Valuation
Compute the Weighted Average Cost of Capital (WACC)
You already computed the cost of equity r_E under 9.a.ii. (CAPM)Estimate the cost of debt by using the book values of interest expenses and book value of debt
Forecast the revenue development for the next 4 years
Use revenues of the past 4 years as an indicator for the growth rate
Estimate the current company value
Discount the estimated revenues with the WACC
Working Capital Analysis
Show the development over the last 4 years and compare with a competitor
Net Working CapitalCurrent RatioQuick Ratio
SWOT AnalysisOutlook regarding the future development of the company