|Due By (Pacific Time)
||11/29/2016 12:00 am
Company: LVMH (https://en.wikipedia.org/wiki/LVMH)
Annual Report: https://r.lvmh-static.com/uploads/2016/03/ra2015_complet_gb.pdf
4 - 5 pages (not including exhibits)
Company Paper Guidelines:
The company paper has to be written in the style of a typical analyst report.
The following points are suggestions. If you, as a student, think that more analysis or metrics are required to analyze your company please go ahead and include them. Initiative, innovation and creativity is appreciated. For certain parts of the paper like the valuation or evaluating the Capex, you will have to make assumptions. A critical aspect of communication here is how you justify your assumptions and present them in a clear and concise narrative in your paper.
- Design format similar to analyst reports uploaded on Blackboard or as per the company papers in my office (recommended).
- 3-5 years of financial data, Financial statements – BS, IS, SCF etc.
- Corporate Governance
- Horizontal and Vertical Trend analysis
- Industry and competitor ratios.
- Build Forecast for the next three FYs and analyze the same. What is their CAGR? Is AFN needed? What does the forecast indicate? Please provide the Excel that contains the pro forma numbers as an exhibit.
- Ratios compared for the numbers till date as well as against the forecast
- Ratios compared to the industry and competition
- Current CAPEX investments – NPV, IRR, Payback
- Working Capital analysis – CCC, ICP analysis etc.
- Weighted average cost of capital. How is their WACC affecting their operations? Their valuation?
- Capital Structure analysis. How is the existing capital structure affecting their WACC?
- Dividend policy (Payout ratios, trending of payouts etc.)
- Risk analysis, Volatility
- Valuation of company. Full valuation required with analysis in paper and excel included as part of exhibits.
- Technical analysis for the last year. Any significant movements.
- Analyst ratings
- Recommendation on whether to invest in the company.
- A full valuation needs to be done. Use appropriate assumptions and mention the same in your paper. Include the excel workbook as part of your exhibits.
- A full forecast will have to be built, analyzed and included as part of the exhibits.
- While I am OK with a student using ratios and other calculations from say, MorningStar or Google Finance, the forecast and valuation is an individual exercise and needs to be done using Excel. Failure to include the same will cost you points.