equity valuation

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FIN 620 Equity Valuation Project

Target Company: Walt Disney Competitor: see list

Use data from Yahoo!Finance, Google Finance, Bloomberg, the company’s annual report, and other public

data to complete the following.

Assignment: Using the Bloomberg Equity Valuation example, complete the following tasks for the

target company and its competitors.

SUMMARY REPORT MUST INCLUDE (narrative with supporting charts and graphs; no more than

10 pages):

(1) Executive Summary (5 pts). (Total of 1 page)

(2) Overview of Companies (20 pts). Summarize the following (No more than 3 pages):

a) Each company’s market share or market position in the industry/sector.

b) Each company’s stock performance

c) Analyst’s Opinion on Buy or Sell

d) Your recommendation and rationale about your assigned company’s future outlook

(3) Stock Price Trend (20 pts). One page per company

a. Create a graph of the monthly stock prices for your assigned company compared to the S&P

500 over a ten year period starting on January 1 until September 30 of the tenth year.

b. Compare and contrast the stock trends.

c. Discuss any spikes in stock price volatility.

(4) Forecast the Stock price (40 pts). Forecast the stock price for your assigned firm as of November of

the tenth year. Compare your forecast price with the actual price to determine whether the stock

is underpriced or overpriced. Discuss the rationale for the differences between the forecasted stock

value and actual stock value. Use the following models: (No more than 2 pages)

a. Dividend Model

b. Company Multiples

(5) WACC for each company (10 pts). Using the company’s annual report, compute the WACC.

Compare your computed value to the WACC documented WACC (source: Bloomberg). (No more than

2 pages)

(6) Report Format (5 pts). Submit one Microsoft Word file or Adobe (*.pdf) file containing the

following:

 All the sections above for each company. Summarize numbers in tables.

 Cover page lists names of group members and their assigned company.

 Label tables, graphs, and any figures. Figures, graphs and tables are embedded in the document

(not a separate file).

 Include page numbers.

 Consistent font size and type.

 Include references, as appropriate.

 Note: this should be your graphs, tables, and analysis and not on-line analysis from

Yahoo!Finance, Bloomberg and other sources.

 Submit report via Canvas before 11:59am on the due date. Late submissions will receive a

50% deduction.