Investment Planning

FINAL PROJECT GUIDELINES Investment Analysis

Investment Planning (BFIN 3324)

Your Analysis Report should include:

1. Introduction. This part should be a short description of the companies you are going to analyze. You can mention the objective of the company, the current situation of their

industry, and latest news related to future projects of these companies.

2. Ratio Analysis. This ratio analysis should include a trend analysis of last three years, and a benchmark analysis that compares both companies, and (if it possible) against the

industry average. It requires getting the ratios (from Morningstar Direct) for the categories

mentioned below for both companies, compare and interpret them to understand the

current financial situation. 1. Liquidity 2. Efficiency 3. Leverage 4. Profitability 5. Market Value

3. Valuation. In this section, intrinsic values will be calculated for both companies by using the following methods: Dividend-growth valuation model (or Discounted Earnings model in

case the company doesn’t pay dividends frequently), and Multiples valuation model (you

should valuate with two different multiples at least). Multiples and Dividends can be found

at Morningstar Direct. This section should end with a recommendation of buy/sell/maintain

for each company, based on the comparison of the market price and your calculations.

4. Technical Analysis. This analysis should include: (1) A chart of monthly prices for the last five years; (2) A chart of weekly prices in the last year; (3) A chart of daily prices for the

last six months. You should use at least two technical indicators overlaid, and other two

below the chart. You should identify the best indicator(s) for that stock, and show previous

signals of trading. Finally, this analysis should say if that stock is currently good or bad

option to trade.

5. Conclusion General conclusions about the stocks of your companies analyzed. Explain your

experience in doing this analysis. Write your learning and those challenges found during

the construction of this project.

6. Appendix and Bibliography The appendix should be a copy of all ratios and other data gathered, indicating the source

of each of those numbers. Bibliography should have a standardized format (You should

include all other sources that you use in addition to your textbook. It is strongly

recommended to have at least three sources to complement).

Notes:

• I would recommend referring material outside of your textbook (library, Internet, etc.) in

order to explain your conclusions.

• Number all your pages from the introduction onward.

• You have to get your data from the Morningstar Direct. If you don’t find some information

you need, ask the instructor before you use information from other sources.

• For your presentations you have to consider among 6-8 minutes. No less, no more. In the

final presentation, it is very important to talk more about group’s conclusion.

• For your presentations, I strongly recommend to practice before and double check your

time, and orthography of every slide.

• The grade of your final report will be based on right content, expected structure, clean

format, and depth of conclusion.(14%)

• The grade of your presentations will be based on progress, right content and understanding

of concepts related to the presentation. (2% each presentation).