Assignment Detail:- B01BAVA320 Business Analysis and Valuation - Kent Institute Australia
Assessment Project -Analyst Report -Same group of the Assessment-
Learning Outcome 1: Demonstrate strong foundation knowledge on the tools and techniques of financial analysis and business valuation-
Learning Outcome 2: Evaluate the linkage between industry analysis, strategic business analysis, accounting analysis, financial analysis and prospectiveanalysis-
Learning Outcome 3: Compare and contrast inter-relationships among various business disciplines that include financial accounting, financial management and strategic management-
Learning Outcome 4: Apply and explain the relationships between strategic businessanalysis, accounting analysis and financial analysis- Identify and utilise value-relevant information contained within financial statements-
Assessment Part: The group -4 students- assignment is aimed at developing your practical skills in financial statement analysis and valuation- It is also designed to enhance teamwork and develop your analytical and communication skills- Details of the assignment will be discussed in week 4
ASSESSMENT DESCRIPTION:
You Can locate Business Analysis and Valuation Model -BAV Model- /spread sheet in the Assessment Brief folder on Moodle- You need to use it for the assignment- When working on your assignment, please follow the following steps:
Step 1: Download the financial reports of your company
Download the financial statements for the past five years of your chosen company--These can be accessed through DatAnalysis premium /Morningstar DatAnalysis - DatAnalysis Premium is a premier research tool, providing comprehensive data on all companies listed on ASX, as well as those delisted since 1989- The database is updated daily from announcements lodged at the ASX and includes corporate details, full dividend history, operational history, company announcements; financial and annual reports in PDF from 1988- It includes reports, announcements, company histories, shareholdings, company profiles, takeovers and financial data--
Step 2 : Reformatting/ Standardised Financial Statements, Common sized financials - Income statements and Balance sheets- & DuPont Analysisa- Reformat/ Standardised / recasting Financial Statements of the company's financial statements for the past five years-b- Common sized financials - Income statements and Balance sheets- i Income Statement- Common Sized -% of Total Sales-ii Balance Sheet -Common Sized -% of Total Assets-c- DuPont Analysis for the past five years - You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model--
Step 3 : Development of forcasting assumptions and Financial-statement forecasts - Your analysis should provide solid support for the assumptions and forecasts that drive your valuation-a- Development of forcasting assumptionsb- Financial-statement forecasts:On the basis of the above assumptions, forecast the firm's future 5 years income statements and balance sheets-
Step 4 : Valuation:Use either the residual income -i-e- abnormal earnings- model or a discounted cash-flow model to produce an estimate of firm value- Focus on the value per share of equity in the company and compare your valuation to the market valuation, providing possible explanations for any differences-
Requirements:
Requirement 1: Download and import 5 years financial reports for the company in BAV Model
a- Download the three major financial statements for the past five years- These can be access through DatAnalysis premium /Morningstar DatAnalysis - DatAnalysis Premium is a premier research tool, providing comprehensive data on all companies listed on ASX, as well as those delisted since 1989- The database is updated daily from announcements lodged at the ASX and includes corporate details, full dividend history, operational history, company announcements; financial and annual reports in PDF from 1988- It includes reports, announcements, company histories, shareholdings, company profiles, takeovers and financial data-
b- Import financial statement data into the respective tabs of the Business Analysis and Valuation Model -BAV Model- -
Requirement 2: Reformatting/ Standardised Financial Statements, Common sized financials - Income statements and Balance sheets- & DuPont Analysis
a- Reformat/ Standardised / recasting Financial Statements of the company's financial statements for the past five years in the BAV Model-b- You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model- - Conduct classification exercise across three sheets, using Classification Lookup tab for reference- Ensure that all INDIVIDUAL line items -excluding totals and sub-totals- are appropriately classified to ensure accuracy of the standardised financial statements and forecasts-c- Prepare Common sized financials -Income statements and Balance sheets- for the past five years - You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model--a- Income Statement- Common Sized -% of Total Sales-b- Balance Sheet -Common Sized -% of Total Assets-d- DuPont Analysis for the past five years- You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model--
This would be one of the raw materials for the development of forecasting assumptions-
Requirement 3: Development of forcasting assumptions and Financial-statement forecasts -Your analysis should provide solid support for the assumptions and forecasts that drive your valuation- You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model-
a- Development of forcasting assumptions :
This is the critical part of the project so provide detailed justification- The forcasting assumption may based on past 5 years treds that can be captured from common sized financials { refer to Req 2 -b- above } , comparisons with other firms in the industry, an industry report - refer to your assessment 2 --The following are the main areas of forecasting assumptions :1- Revenue growth rate2- Margin Growth rate3- Net Operating Profit margin4- Start of year Operating Working Capital / Sales5- Start of year Net Operating Long-Term Assets / Sales6- After-tax Cost of Debt7- Start of year Debt to Capital ratio8- Shares Outstanding9- Risk-free rate of return10- Equity Beta11- Market risk premium12- Cost of Equity13- Cost of Debt14- Tax Rate15- Book Value of Net Debt
b- Financial-statement forecasts:
On the basis of the above assumptions, forecast the firm's future 5 years income statements and balance sheets- You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model--
Requirement 4: Valuation:a- Use either the residual income -i-e- abnormal earnings- model or a discounted cash-flow model to produce an estimate of firm value- You need to use the respective tabs of the Business Analysis and Valuation Model -BAV Model--
b- Focus on the value per share of equity in the company and compare your valuation to the market valuation, providing possible explanations for any differences-
2 -two- deliverables :
1- Analyst Report 2500 words -word count including executive summary, table of content, references, appendix & tables-2- Completion of all tabs/sheets of the Business Analysis and Valuation Model -BAV Model-
Format of the Analyst Report2500 words -word count including executive summary, table of content, references, appendix & tables- You at least should have the following details:a- Assignment Cover page clearly stating group members' name and student ID Numbersb- A table of contents, executive summaryc- A brief introduction or overview of what the report is about-d- Body of the report with the answers/findings/briefing/summary/highlights of the above questions/requirements -Req 1 -4-e- Conclusionf- Diagrams and tables clearly labelled and explained-
Attachment:- Business Analysis and Valuation-rar
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