代做FINM1415 Introduction to Finance Semester 1, 2025代写Java编程

FINM1415 Introduction to Finance

Share Valuation Report

Task Sheet

Semester 1, 2025

Due at: Fri, 9 May 2025, 2:00PM

Submission: A pdf file of Part A, including a cover page, is submitted to both Turnitin and the Blackboard submission link. A pdf file of Part B and your Excel file are submitted through the Blackboard submission link only.

This assignment has a total mark of 100.

It contributes 20% to your final grade.

Part A: Stock Valuation Report – 70 marks

Objective

This assignment aims to step you through a basic analysis of a stock. You will analyse your stock to calculate a target price and provide a clear “buy” or “sell” recommendation to your client.

Scenario

You are a junior equity analyst working for a reputable investment firm. Your senior analyst has assigned you the task of preparing a comprehensive valuation report on a publicly traded company. Your client, a high-net- worth individual with a long-term investment horizon, is considering adding this company to their portfolio and has requested a thorough analysis to inform their investment decision.

Your task is to determine a fair value for this company’s stock and provide a recommendation to the client. You’ll do this by undertaking both a DDM and valuation multiples method analysis. Your report should present either an estimate of the target price for your stock or an estimated range of target prices, and you should provide a clear recommendation of either “buy” or “sell” .

The target price date depends on the date of your company’s most recently released annual financial statements. If your company has a reporting year that ends in June, calculate a price for 30 June 2024. If the reporting year for you company ends in December, calculate a price for 31 December 2024

Preparation

You get to choose what company to write a report on. The company has to be in the same sector as your group’s assigned company from your first presentation. Everyone in your group should choose a different company, and no one can choose the specific company from your first presentation.

See the Database Access Instructions pdf in the Assessment folder on Blackboard for a guide to accessing the data that you’ll need to complete this assignment.

Assignment Task – 65 marks

You should write a report in a maximum of 5 pages that includes the following sections:

1. Introduction (5 marks) – Give a brief synopsis of your company. What business do they operate?  What’s their history? Who are they competing against? Try to answer these questions and anything else that you think is relevant for the reader to have a basic understanding of your company.

2. Dividend Discount Model (DDM) Valuation (30 marks) – Calculate a valuation for your company’s stock using the DDM. Your analysis should include:

a. (5 marks) An estimate of equity cost of capital (re ) using the CAPM. You can assume an expected return on the market of 10.5% and a risk-free rate of 5%.

b. (15 marks) An estimate of the growth rate in dividends‘。). You need to clearly describe the process of coming up with a growth rate estimate. Are you choosing a historical variable to estimate growth rate, or calculating growth from the return on reinvested capital?

If you re using a historical variable, which variable are you choosing and why? How much historical data are you using in your estimate and why? Are there qualitative factors that   you ve taken into account to adjust your estimate?

If you re calculating growth using return on reinvested capital, how are you calculating the components of the growth equation? What assumptions are you making that make it reasonable to calculate growth this why, and why do you think they re justified? Are there qualitative factors that you ve taken into account to adjust your estimate?

In either case, you should also consider whether it makes sense to assume that the growth estimate for the present day should continue forever, or whether it would make more sense to estimate additional stage(s) of growth in the future. Where are you taking your long-run growth estimate from? Why do think this is justified for your company?

c. (10 marks) Use the inputs you estimated in parts (a) and (b) to carry out a DDM valuation so that you obtain a stock price. What recommendation would you make about investing in this stock?

3. Valuation Multiples Method (15 marks) Provide an assessment of the company using at least 3 value multiples. Your analysis should include:

a. (3 marks) A statement of which valuation multiples you re looking at and why you expect

each of these multiples to provide a good comparison of value between your company and a set of comparable companies.

b. (6 marks) For each multiple, calculate an implied share price using a measure of the

average of that multiple across comparable firms. Which measure of average did you choose to look at and why? What recommendations would you make for your stock on the basis of each of these implied values on their own?

Take care if you re using an NTM multiple to multiply by an estimate of the denominator value for the next year, rather than using the most recent reported value, and justify your estimation.

c. (3 marks) For each multiple, consider how the value of the multiple for your firm has changed over time and make a qualitative assessment of what that means for your   recommendation about the stock.

d. (3 marks) Pull your recommendations from the three variables together into an overall recommendation based on your analysis of multiples.

4. Final Recommendation (5 marks) - Compare the recommendations you gave using the DDM and valuation multiples method. What are some strengths and limitations of each of the methods? How  does it support your overall argument to discuss your analysis from both sections instead of just one? What is your final recommendation for the stock and why?

5. Report Update (10 marks) – Following your final recommendation, you should add an “update” to your report. For this update, imagine that you’ve already finished publishing and distributing your report when your company suddenly announces that they will increase their current dividend payout ratio by 10%. Provide an analysis of the impact that this announcement has on your recommendations. Your update should include:

a.   (4 marks) An evaluation of whether increasing the dividend payout ratio is expected to be profitable looking just at the expected and required return for this extra capital.

b.   (4 marks) A re-calculation of your DDM, being very careful to recognise both of the key variables in your calculation that need to be updated when dividend payout ratio changes.

c.   (2 marks) A conclusion about whether your final recommendation stays the same or changes.

Communication & Formatting – 5 marks

Structure

Your submission should be written in a report style. It should begin with a cover page and should include an introduction and conclusion. Your introduction should include the introduction of your company in addition to introducing the purpose of your report. Your conclusion is where you should include your final recommendation for the stock, and this should come before the report update. You do not need another conclusion after the update, which should be written as though it’s an addendum to an otherwise complete report.

You should break the body of your report into logical subsections and use clear subheadings to guide the reader.

You must include all of the important steps of your working in the body of your report. The grader should be able to see everything they need to assess your work by reading only the body of your report. It’s not necessary to include an appendix, and anything placed within an appendix will not be directly marked, but you are allowed to include appendices if they would aid the reader in understanding your report.

Writing Style.

The report should be written in a professional tone and with language appropriate for a junior equity analyst submitting a written report to a client. The language should be clear, concise, and free of spelling or grammatical errors. However, you should balance this professional tone with language suitable for a university assessment. For example, you should avoid unnecessary jargon that isn’t in common use throughout the course and provide definitions for any terms drawn from external sources. You should also show the major working steps of your numerical analyses in your report even where this might be skipped in an actual report to a client. You are not required to explain basic concepts that have been taught in FINM1415.

Formatting

Your report should be a maximum of 5 pages, including any tables and figures in the body of the report, but not including the cover sheet, reference list or any appendices. The grader will stop reading after 5 pages     and will treat the rest of the body of your report after this point as though it was not included.

Your report should use a standard, easily readable font in size 12, use normal margins on all sides, use justified text (i.e., aligned to both the left and right margins), and include a page number in the bottom right- hand corner of every page. You must begin your report with the cover page that’s provided on Blackboard.   You should include your name and student number as a header on every page.

Referencing

All external sources should be correctly cited using the either the Harvard or APA referencing style. Please note that UQ’s version of the Harvard referencing style, called UQ Harvard, is no longer maintained or supported, but you’re welcome to use any other version of the Harvard referencing style. If using APA, you  should use APA 7th  as per the UQ style guide:https://guides.library.uq.edu.au/referencing/apa7. You should reference the database you used to obtain your data, but you do not need to provide a source for ideas taught in FINM1415 and don’t need to include class materials or the class textbook on your reference list.

Spreadsheet File

In addition to your report, you need to submit a spreadsheet file that shows you undertaking a DDM analysis. Nothing on this spreadsheet will be graded, so make sure that all your answers and important working from the spreadsheet are included in your written report. The reason you need to submit this file is so the grader can verify that you actually did a working DDM and didn’t just make up a target price. You should  place your DDM valuation on the first worksheet so that the grader can see it as soon as they open the file. Don’t include anything else on this first worksheet that isn’t a part of your DDM calculation. You may include  other worksheets with your other calculations or data used in your analysis (ie, you don’t need to make a separate spreadsheet file for just your DDM), but these other worksheets won’t be reviewed by the grader.

Part B: SEAL Reflection – 30 marks

Self-reflection is the best way to develop your understanding of your own learning process for future improvement. The SEAL reflection method is a structure that guides you to think about your experience of the course in four aspects: Situation, Effect, Action and Learning.

You will complete your self-reflection by filling in the FINM1415 SEAL Reflection template from Blackboard. You submit your completed reflection as a pdf file through the Blackboard submission link at the same time as you submit your report from Part A, but you don’t need to combine these two pdfs together.

Your reflection needs to be critical. You need to move beyond merely describing your learning experience, to highlighting, explaining and analysing the changes in your understanding and approaches that resulted from  the experience. Some of the aspects of your experience that you might want to write about include:

•    What have you learned about applying textbook knowledge to real-world situations? What are the   challenges of dealing with real-world analysis? Is there anything particular to the company that you evaluated that you found challenging to address?

•    What have you learned about working collaboratively in a team? How effective was your team’s communication, and how well might you have fared if you’d been working in an actual firm with this team? What strategies did your group use to stay productive? Have you discovered your strengths and personal challenges when it comes to working in a team?

•    The implications of what you have learned for your future professional practice - how would you develop your professional capabilities, and how would you work on the areas that need further development?

Submission

Convert your report to pdf format and give it the title:

[LAST NAME]-[FIRST NAME]_[student number]_Part A.pdf

Example: ASTER-JON_12345678_Part A.pdf

Convert your self-reflection to pdf format and give it the title:

[LAST NAME]-[FIRST NAME]_[student number]_PartB.pdf Name your Excel spreadsheet as:

[LAST NAME]-[FIRST NAME]_[student number]_Excel.xlsx

Submit your Part A pdf only to the Turnitin submission link. This will run a plagiarism and AI-cheating check on your report.

Submit all three files – your Part A pdf, your Part B pdf, and your Excel file – to the Blackboard submission link.