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Report - Union Cement Company

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Report on Union Cement Company

Table of Contents

1. Economic Analysis 2. Company analysis • Horizontal and Vertical Analysis of Income Statement • Horizontal and Vertical Analysis of Balance Sheet • Ratio Analysis 3. Estimating Beta 4. Estimating the Intrinsic Value of the Stock

Economic Analysis

The country is a merged form of six states in 1971 and together they formed United Arab Emirates. It is one of the prospering economies of the world whose per capital income is in par with some of the most developed nations of Europe. This is attributable to the oil revenues and the booming real estate market. UAE is also now fast developing as alternative luxury tourist destination. However, the falling oil prices, banking crisis and turbulence in the real estate have done a lot of damage to the economy.

The economy of UAE is open with the high living standard of the people and equally higher per capital income with the annual trade surpluses as well. In the last 30 years, the economy of UAE has always been known as that of based on oil and oil products but some serious efforts in last two decades has changed this scenario and now the GDP of UAE based on oil and natural gas is just 25%. The government is now quite concerned with the creation of jobs, creation of world class infrastructure and opening up its many areas for the private players. The country is also now committed in making UAE a truly world class destination for commercial and residential space with some very unique ideas and projects. The year 2009 has not been very good for the economy and the economy saw a drop of 4% drop in GDP due to the falling oil prices, financial crisis, tight international credits and recession in the real estate market. In the year 2009, the greatest set back to the economy came from the depressed real estate prices in Dubai

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