(If you want to analyze a dividend paying company, you can find a robust listed in attachment.
In addition, here is a template you will find to be useful for the assignment. It matches the examples given in the textbook on stock valuation models in Chapter 9: Stock Models (Excel workbook) .
Defend your choice of model, and explain why it is appropriate to use for your company’s stock. Be sure to explain how you arrived at any assumptions regarding values used in the model. Determine whether your company appears to be correctly valued, overvalued, or undervalued based on your company’s stock current price and model result. Check Yahoo Finance for current stock prices. Finally, explain why your company’s stock appears to be over-, under-, or correctly valued.
typically be 23 pages in length as a general expectation/estimate. Rubric listed below (1-5).
1. Student uses Excel spreadsheet, and the formulas and calculations are correct.
2. Student provides a cogent explanation defending his/her choice of model, why it is appropriate to use for the chosen stock, and how he/she determined any assumptions on the values used in the model, including why the assumptions were required. Assumptions used for model inputs are evidenced-based and sources and/or use of estimation techniques based on historical data support explanation.
3. Student provides a thorough and detailed analysis comparing his/her chosen model with other potential models that could have been used in the analysis.
4. Student provides a thorough and detailed assessment of whether the chosen company appears to be correctly valued, overvalued, or undervalued based on the company’s stock current price and model result, and explains the implications of his/her conclusions. Student correctly determines the current prices of the stock and cites the sources of the price data.
5. Student provides a thorough and detailed assessment explaining the reasons why the company’s stock appears to be over-, under-, or correctly valued and provides rationales that are evidenced-based, uses model’s estimation inaccuracies/weaknesses and the stock’s current price in reasons given, and are beyond personal opinion.
