XYZ is a publicly traded firm (of your choosing) in the US stock market.You have been hired as a business consultant to analyze XYZ Company. While your client is very successful, he/she does not reall
XYZ is a publicly traded firm (of your choosing) in the US stock market.
You have been hired as a business consultant to analyze XYZ Company. While your client is very successful, he/she does not really understand financial numbers and desires your help. Your client wants to pay you to do the homework and due diligence on his behalf before he invests his money. Your job to answer the question “Is XYZ Company the right company to invest in?”
Please be prepared to defend your recommendation, either way (whether you are recommending for or against investment in your client’s chosen firm.)
Since this is your first consulting job for this client, you want to do it right. After all, this could lead to additional analysis opportunities for you down the road. After benchmarking with other financial consultants, and viewing some of their work, you feel you need to provide the following information to your client:
Brief history and description of the company’s operations, background, primary product/service offerings, customers, business sector(s), etc. This is the qualitative research information on the paper.
Brief bios of top executives and board of directors
Financial analysis of XYZ Company – based on data provided from the last five year financial reports (Annual Reports and 10Ks). (note: you must choose a publicly-traded corporation in order to be able to access this data)
Report on the strengths and weaknesses of any financial trends of XYZ Corporation
Market performance (stock price/returns over the last five years relative to the S&P 500 index and major competitors.
XYZ Company’s competitors – who are they, size, background, etc.
XYZ Company’s industry – what are trends in this industry?
Your assessment of company’s prospects going forward and investment recommendation (buy, sell, or hold the stock)
Based on your research, where do you think XYZ Company is going to be in three to five years? Provide the valuation on 3 to 5 years going forward. To help answer this question you need to know the company as well as the industry. Make sure you provide and support the assumptions used to project the company’s future. A valuation model must support your recommendations in your paper. Chapters 9 and 18 of our textbook have various valuation models of equities.
Recommendations – what are you advising your client to do?
Bibliography – You know your client is going to want to verify the information provided in your report, therefore you will provide references in a bibliography.