Excel Project

1. For convenience, I am supplying a template which includes the financial data for Pepsico. In future projects, you will harvest and collate this data yourself.

2. There will be a brief written report accompanying the spreadsheet (2 pages, detailed below).

The process is the same in all of our valuations:

Harvest financial data Collate data Basic analytics (Common size, growth, basic ratios) Historical Cash Flows Components for relative valuations Components for discount rates Consider how to forecast items which drive cash flows

Submit the finished spreadsheet along with an abbreviated analyst report:

•Two page total – around 1,000 to 1,500 words

•Only these sections:

•Overview (~100-150 words)

•State your position (Buy, Sell, or Hold), the target price, and upside/downside percent.

•Identify the key reasons for your opinion – don’t overexplain, these will be covered below.

•Investment Summary (~300-450 words)

•For each of your key reasons identified above, explain what is driving your assumptions about the future.

•Financial Analysis (~200-300 words)

•Explain how your key reasons are driving your financial forecasts, particularly with regards to revenue, profitability, capital spending, working capital management and leverage.

•Valuation (~200-300 words)

•Identify the methodologies used which support your position and the resulting values.

•Discuss the inputs and outputs for each method you refer to, and how they connect to your overall value hypothesis.

•Investment Risks (~200-300 words)

•Explain what might make the price move differently than you predict, and how you accommodated this in your analysis.

Please limit your written report to only two pages.