- Follow the link and use Harvard Style criteria
| Structure for valuation based study
Introduction: It should state the topic and the general aim of the dissertation. It should also describe the structure of the dissertation (i.e. how you organise your dissertation in the various sections) |
| Methodology and Data Description:
it is important that you explain the method(s) you are using to value the company and that you describe the data used in your valuation exercise. You can give any title to this section as long as, at the beginning of the section, you state clearly that the objective of the section is give a description of your method(s) and of the data you use. |
| Empirical Analysis:
this section is dedicated to the illustration of your analysis and of your investment recommendation. You can give any relevant title to this section as long as, at the beginning of the section, you state clearly the objective of the section. |
| Conclusion:
this section presents a summary of the findings of the dissertation, i.e, reviews your investment case about the company you are analysing. The reader of this section is expected to be given a summarized perspective of your view on the company’s fundamentals and investment story backing your investment recommendation. |
VALUING A LISTED COMPANY.
Students have to expose their investment case about the selected company, supported in their valuation analysis. The investment recommendation can be to BUY (if valuation higher than
market price) or to SELL (if valuation lower than market price) the selected company. The consistency and quality of the investment case and the supporting valuation exercise, both
properly explained, are the topics to be evaluated. The investment report is self-contained, i.e. there are no additional elements to be evaluated.
The report should deliver:
- a discounted cash flow (DCF) valuation of the stock (common equity) in the company by
- identifying the key assumptions for the DCF analysis,
- presenting relevant cash flow tables and applied valuation formulas, and
- estimating how sensitive the value estimates are to changes in the key assumptions,
2) a relative valuation of the stock (common equity) in the company by
- preparing a list of comparable (peer) companies, using criteria that are justified to be appropriate,
- choosing a multiple that will be used in comparing companies across the peer group,
- evaluating the company against its peers using the chosen multiple,
3) a final value estimate and investment recommendation by
- considering the values obtained from discounted cash flow and relative valuation models and reconciling potential differences between the two, and
- making a final investment recommendation on whether to buy or sell the stock of the company
