Equity research reports on public companies

Many investment banks employ analysts to write equity research reports on public companies to advise their clients on their stock investments. In many cases, an initial equity research report is 20 to 50 pages long! For this class, you will focus on only three of the many important sections typically included in an equity research report. Thankfully, your Mini Equity Research Report will be much shorter than those published by investment banks!
In Week 1, you chose a publicly traded company to use throughout this class for the Mini Equity Research Report. In the first section of the Mini Equity Research Report, you evaluate the historical financial performance of the company (Week 1). In the second section of the Mini Equity Research Report, you evaluate the company’s performance using common financial ratios, and you compare the company to the competitor’s performance with the same financial ratios (Week 2). Finally, in Sections 3 and 4 of the report, you develop a value for the company’s stock and compare your value to the current market price of the stock (Weeks 3 and 4). Based on the analysis you present in these four sections, you will develop your recommendation to buy, hold, or sell the stock of this company.
It is very rare for one company to have only positive facts. Most companies have some good facts and some weak facts. In Sections 1 and 2 of the Mini Equity Research Report, you will analyze a variety of financial data for your selected company. As the equity analyst, it is your responsibility to combine the positive and negative facts into one recommendation (buy, hold, or sell). It is important to consider the importance of each fact and acknowledge that there is no perfect answer. Your recommendation should be based on the strength of the positive facts while recognizing the risks from the negative facts.
This week, you will write the introduction (including your stock recommendation) and the conclusion of the Mini Equity Research Report. In addition, you will revise the four sections from the first four weeks of class and combine them into this Mini Equity Research Report. Finally, you will submit your final Appendices A, B, C, and D with the Mini Equity Research Report.

Prepare:
Prior to beginning work on this final project,
● Complete the Week 5 – Learning Activity: Understanding Cost of Capital.
● Review the feedback you have received on your assignments throughout this course.
● Locate and revise (if necessary) all of your assignments from Weeks 1 through 4.

Write:
In your Mini Equity Research Report,
● Write an introduction. In your introduction, include the following:
○ State the name of the company and a brief description of what it does.
○ State the current market price per share and total market capitalization of the company.
○ State two key historical financial performance facts about your company (you can ascertain this information from your Week 1 – Assignment 3, Section 1: Financial Statement Analysis).
■ Categorize the overall financial performance as strong, neutral, or weak.
■ Justify your assessment based on the key facts.
○ Summarize (briefly) the ratio performance of the company.
■ Categorize the overall ratio performance as strong, neutral, or weak.
■ Justify your assessment based on the key facts.
○ Determine the valuation conclusion based on the constant growth formula in Week 4, using the required rate of return derived from the CAPM.
○ Determine your recommendation of buy, hold, or sell the stock of your chosen company.
● Include your revised Week 1 – Assignment 3, Section 1: Financial Statement Analysis.
● Include your revised Week 2 – Assignment 3, Section 2: Financial Ratio Analysis.
● Include your revised Week 3 – Assignment, Section 3: Dividend Analysis and Preliminary Valuation, Part 1: Dividend Analysis only
● Include your revised Week 4 – Assignment, Section 4: Valuation Conclusion.
● Write a conclusion. In your conclusion, include the following:
○ Summarize the analysis that was completed for the Mini Equity Research Report.
○ State your recommendation of buy, hold, or sell the stock of your chosen company.
○ Summarize the key facts supporting your recommendation, including your concluded stock price.
● Include Appendices A, B, C and D.

Sample Solution

ow was development used as a military good situation in European colonization? In Jared Precious stone’s talk, “Firearms, Microbes, and Steel” He displayed strong conflicts with respect to how development gave them an enormous ideal situation in the midst of triumph. Precious stones’ best reasons will be explain in this article and used to analyze this conflict. Regardless, Europeans had steel and weapons, the two things were used to butcher Nearby Americans in the bleeding edge. Nearby Americans didn’t have about a comparable guarded layer and guns that Europeans did, they used stones and their family. Disorder expected a vital work in various achievement, especially in the midst of European triumph. Ailments would murder and spread among Nearby American peoples and reduction their general population numbers. This has happened in basically all domains in the world, the general population that lives in a particular disease creates protection from it, but the people who don’t can without a very remarkable stretch pass on from it. Finally, the use of training have Europeans and Spaniards a key position when it came to expanding. They knew how to scrutinize and create, yet the Indians didn’t, so Indians were completely befuddled. They would make their courses of action and guides on their next attack, and the Indians would never be aware. Europeans and Spaniards constantly fathomed what the Indians were doing, so they could never find them resting with a frightening attack or catch. Development was a huge military favored viewpoint to Europeans and Spaniard since they had the method for making steel, collect ships, and go against disease through development

Jewel shows his dispute by introducing the utilization and making of steel in the European social class. They had loads of it, and they manufactured materials delivered utilizing steel to empower them to win wars and battles. They had steel swords, edges, spears, and guarded layer to safeguard their bodies from any naughtiness. It was a deep rooted truth that Nearby Americans were still in the “stone age” despite everything relied upon stones, earth, and people to fight in battles. Valuable stone communicates, “The oddity of ponies, steel weapons, and firearms without a doubt deadened the Incas at Cajamarca, yet the fights after Cajamarca were battled against decided obstruction by Inca armed forces that had previously seen Spanish weapons and ponies.” (pg. 73). Weapons expected a minor work in the disaster area, yet hugy impacted the Neighborhood Americans, intellectually. European weapons were their most critical movement at this point, and were viewed as earth shattering by their adversary. This caused Indians to feel weak and squashed without beginning the battle, it was embedded to them that they were no partner for these strong and pushed people. The inspiration driving for what reason is in light of the fact that it seemed like a Russian roulette redirection, no one knew when it would hit them or from where, the Spaniards picked their targets and ended. Regardless of the way that weapons in those days missed their goal piece of the time and expected a huge timespan to reload, it would scared them to death.

Spaniards and Europeans knew how to scrutinize and form, and the Indians didn’t, from this time forward why they were productive in getting their family. Their most imperative favored outlook was that they understood how to fabricate, they had staff who assisted them with gathering, and they had the satisfactory resources for do thusly. Spaniards and Europeans fundamentally gathered boats to investigate their way to deal with vanquish show up through the ocean. This was the quickest strategy to get beginning with one region then onto the following, it is the means by which they sorted out some way to colonize people so quickly. Nearby Americans were ceaselessly by strolling, since they missed the mark on the learning and resources for collect ships or guns. Jewel reinforces this case by expressing,”Piazarro come to Cajamarca through European man time innovation, which assembled the boats that took him across the Atlantic from Spain to Panama, and afterward in the pacific from Panama to Peru” (pg. 75-76). Spaniard were simply prepared to defeat show up because they had the help of European development and learning. They knew how to examine maps, headings, letters, an

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