Valuation on Volvo

Richmond University

Richmond Business School

ACC 5210 SPRING 2018 ASSIGNMENT

The project requires students to build a financial model for Volvo Group using the Annual Reports, Interim Reports, Trading Updates, Company news and general industry and economic data.

Prepare a report with a recommendation to BUY, HOLD or SELL for the company’s shares based on the valuation of the company.

Students will build the model during the computer lab sessions, which will consist of three years of historic data 2015, 2016 and 2017. The students will be required to prepare profit, cash flow and balance sheet forecasts for 2018 and 2019.

The report should use techniques such as Porter’s analysis to identify opportunities and risks, explain the costs of producing heavy trucks and any other significant costs in running the company. Students should also consider the impact of exchange rates on company profits.

A detailed margin analysis should be presented in tables.

The report should contain a share price chart, with the data of two competitors and against the Euro STOXX 600 Index.

The student’s valuation section should include PE Ratios, P/FCF, EV/EBITDA and a Discounted Cash Flow.

Students should prepare a brief oral presentation to support their investment recommendation. As part of their presentation students will be asked questions on their findings.

Important details

· To find the data you need, you should use the Annual Report, company websites, industry data and other analyst’s reports.

· You should submit your coursework electronically using the coursework submission system.

· You should present your report in a clear structured way.

· If you have any questions related to the coursework, please contact Charlie Dove-Edwin to set up a meeting in office hours.

Submission deadline: April 16th 2018

Maximum word limit: 1000 words per individual plus up to 2000 words as group.

Coursework Assessment Criteria

In preparing your coursework, you should be aware that you will be assessed by reference to the extent to which your answers meet the following criteria: Identification and application of knowledge to the question asked

Capacity to find data from online resources

Ability to apply theories related to the questions asked

Presentation of work in a clear and coherent way

Evidence of reading and research

Clear and accurate expression