Investment

Description

Once your company of choice is approved by me, plot the past 5 years of dividends on the Bloomberg terminal and take a screenshot of it and include the screenshot in your report.

Step 2. Write a brief review about the company using the information found on Bloomberg. Don’t copy and paste, use your own words. (one paragraph)
List the main competitor (or competitors) of the company. Compare the ROA, ROE and P/E ratios for the past year. Put them in a graph and write a paragraph based on the graph.
Step 3. Find the following using the Bloomberg terminal: -Daily price (for the past year) and,
-S&P 500 (for the past year)
Plot the daily price and S&P 500 in a graph and comment how the company is doing relative to the market.

Step 4. Find the following using the Bloomberg terminal (notice that you may have already gathered some of the following in the earlier steps):
-Historical dividends (past 5 years),
-Expected dividend growth,
-ROE (or net income and total equity), -Earnings per share,
-Book value per share,
-Payout ratio,
-Price earnings ratio,
-EPS growth rate,
-Price/cash flow ratio,
-Cash flow per share growth rate -Return on 90-day US T-bills -Stock beta

Step 4. Using the data you’ve gathered at previous step, start your calculations. Calculate:
-Arithmetic average growth rate, -Geometric average growth rate, -Sustainable growth rate, -Discount rate.
PLEASE SHOW ALL CALCULATIONS!!!

Step 5. Calculate the stock price using:
• Constant perpetual growth model using:
-arithmetic growth rate,
-geometric growth rate,
-sustainable growth rate,
-expected dividend growth (as per the Bloomberg)
• Price using the price to earnings ratio
• Price using the price to cash flow ratio PLEASE SHOW ALL CALCULATIONS!!!
Step 6. Compare the different prices that you’ve calculated using the 3 above models with the actual price of the company (mention date you retrieved the closing price of company) and write a paragraph comparing your results and concluding with your recommendation to buy or sell this stock. End your report with your opinion on how well you believe the company is doing from the different analyses that you conducted.
Step 7. Submit a copy of your project on or before November 29th, 2019 (before 6 p.m.)