Select a company listed on an internationally recognised and well-established Stock Exchange . It is important that historical share and stock index price data and financial statements for the selected firm and its competitors is available for a minimum of 5 years. It is preferable to select a firm operating in a single industry but not the financial industry since their accounts are more complicated and are regulated through central bank oversight.
• Discuss how successful the selected firm has been at delivering value to its shareholders
• Analyse the historical total shareholder return and economic value adde for the selected firm and its principal competitors. You can also pursue or discount SVA / MVA and define you own value drivers based on the organisations annual statement.
• Although a full ratio analysis for the company is not required and will not be assessed, you may find a ratio analysis supplemented by analysts’ and journalists’ reports on the company helpful in analysing its past performance and as a guide to future performance. you can consider net asset valu how has it changed; comparable ratios . when looking at evaluations it is good to look at relative evaluation. This should be compared with competitors and previous history data.
Evaluate the current shareholder value of the selected firm.
• Apply discounted flow techniques to the selected firm’s projected free cash flow performance to determine its current shareholder value. This is derived from the selected firm’s projected financial statements.
