Ups and Downs: Valuing Cyclical and Commodity Companies Aswath Damodaran Stern School of Business, New York University September 2009 Ups and Downs: Valuing Cyclical and Commodity Companies Abstract Cyclical and commodity companies share a common feature, insofar as their value is often more dependent on the movement of a macro variable (the commodity price or the growth in the underlying economy) than it is on firm specific characteristics. Thus, the value of an oil company is inextricably linked
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Home Depot Financial Analysis Introduction Home Depot is an American public corporation founded in 1978 (Homer, 2011). Home Depot’s shares are listed in the New York Securities Exchange with the abbreviation HD. The company retails construction and home improvement commodities and services. Home Depot runs stores of the big-box format across the United States, Mexico and Canada. Home Depot’s headquarters are in Cobb County, Atlanta. Home Depot is the largest retailer of home improvement products
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MINERAL WATER 44-2 TABLE OF CONTENTS PAGE I. II. III. SUMMARY PRODUCT DESCRIPTION & APPLICATION MARKET STUDY AND PLANT CAPACITY A. MARKET STUDY B. PLANT CAPACITY & PRODUCTION PROGRAMME IV. RAW MATERIALS AND INPUTS A. RAW MATERIALS B. UTILITIES V. TECHNOLOGY & ENGINEERING A. TECHNOLOGY B. ENGINEERING VI. MANPOWER & TRAINING REQUIREMENT A. MANPOWER REQUIREMENT B. TRAINING REQUIREMENT VII. FINANCIAL ANLYSIS A. TOTAL INITIAL INVESTMENT COST B. PRODUCTION COST C. FINANCIAL EVALUATION D. ECONOMIC BENEFITS
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Guide to Writing a Business Plan Instructions: 1. Complete as many sections in this document as possible, or as required. Throughout this document, ANZ has inserted example text to help guide customers on how to complete each section in a business plan. The text is RED and based on a fictional company called Chartwell’s Chocolates. Once you have read this text and understood how each section is to be completed, ensure that you replace this example text, with your own. 2. Save the document
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FNB (First Rand Bank) and Nedbank. A brief analysis of the state of the economy and the financial industry was done. Furthermore a thorough investigation and analysis was done in respect of both firms. The Discounted cash flow and relative valuation techniques are used, both of these uses quantitative information. Cumulative information will also be incorporated to answer the objective and research hypothesis in a scientific and logical way. Statement of the problem: The business problem for the
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Sample Business Plan (A Service) SMITH E-COMMERCE CONSULTING Mary Smith July 12, 2011 Section 1: The Business Profile| Description of My BusinessI plan to provide a complete service for the design, installation and maintenance of E-commerce marketing functions for my retail clients. I intend to evaluate the success of each installation and follow up to make changes to improve the effectiveness of the each site.| Targeted Market and CustomersMy customers
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The Little Book of Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street, 9-‐96 New York, NY 10012 Email: adamodar@stern.nyu.edu Phone: 212-‐998-‐0340 First draft: October 14, 2010 Preface Knowing the value of an asset may not be a prerequisite for investing
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Diamond Food Case Project Requirement 1 1. Manipulation of commodity cost. As a common practice in the company, management would instruct related accounting employee to decrease the commodity costs by a small incremental at a time, until the desired earning numbers for that period was achieved. 2. Special accounting treatment of grower payments. Diamond made “continuity payment” and “momentum payment” to manipulate cost to growers. These payments were claimed to be advances for multi-year
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Question 1 Home Depot (“HD”)Strategy The home improvement industry was a large one with industry sales approximated at $80bn dollars in 1985 and had grown at a compounded annual growth of 14% over the last 15 years. HD’s strategy was to bring the warehouse retailing concept to the home center industry, a DIY concept in a warehouse which sold an array of building materials and home improvement products on a cash and carry basis. The company targeted individual homeowners and small contractors
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Innovation 12 Changing Societal Concerns, Attitudes, and Lifestyles 13 Key success factors 13 Cost 13 Quality 14 Brand Image 14 Competitive strategy analysis 14 Vertical Integration 15 Transaction Cost Economics 15 Cooperative Strategies 16 Offensive Strategies 16 Defensive Strategies 17 First Mover Advantages 17 Financial Effects 17 SWOT Analysis 18 Strengths 19 Good Position – Strong Brand Image of “Affordable Luxury” 19 Excellent Customer Service 19 Strong Performance despite Weak Economy
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