Jorge Porres August 18, 2013 Investments Keiser University Week 3 Essays 1. Industry Life Cycle: Discuss the industry life cycle, how this concept can be used by security analysts, and the limitations of this concept for security analysis. The industry life cycle is made up of five stages: 1. Pioneer phase: This face is characterized by the high cost of production and the low demand of the product by the market. Mostly made up of start-ups. 2. Growth phase: When sales start to grow
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Quantitative Business Valuation Other Titles in the Irwin Library of Investment and Finance Convertible Securities by John P. Calamos Pricing and Managing Exotic and Hybrid Options by Vineer Bhansali Risk Management and Financial Derivatives by Satyajit Das Valuing Intangible Assets by Robert F. Reilly and Robert P. Schweihs Managing Financial Risk by Charles W. Smithson High-Yield Bonds by Theodore Barnhill, William Maxwell, and Mark Shenkman Valuing Small Business and Professional Practices
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Mavis Lei JetBlue Airways IPO Valuation Introduction and Recommendation In July 1999, David Neeleman had announced his plan to launch a new airline company that would bring “ humanity back to air travel” despite the fact that U.S. airline industry had lot failures over the past 20 years. JetBlue had target its strategy and operating philosophy by offering customers low –fares tickets, high performance of customer service, providing new aircrafts and focused on point-to-point service to large
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Questions for the Roche case Case write-ups due on Wednesday, March 30, at 8:10 pm 1. Why is Roche seeking to acquire the 44% of Genentech it does not own? From Roche’s point of view, what are the advantages of owning 100% of Genentech? What are the risks? (1 pt) Roche already had 56% of shares of Genentech and now it seeks to acquire rest of the 44% shares so as to get the benefits of synergies. The pharmaceutical companies have been unable to introduce new products lately, and their only
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Capital Valuation Paper YOUR NAME COURSE Instructor NAME DATE Capital Valuation Paper A business valuation of a company, especially one the size of Target, is a mystery but is often an integral part of planning, decision-making, strategic assessment, and maybe an equitable resolution to a touchy concern. Knowing what a business is worth and placing a value on it builds confidence so undervalue or overvalue of the business does not happen. Team C will perform a capital
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and Acquisitions – A beginner’s guide Valuation M&A involves using more than one valuation technique to arrive at a valuation that we think is fair. The most common techniques used are: Comparable Publicly traded companies (“Public Comps”) – this analysis indicates how the stock markets are valuing companies that are similar to the target Precedent Comparable Transaction analysis (“Transaction Comps”) – this analysis indicates the valuations at which prior M&A transactions have been
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CHAPTER THREE How Financial Statements are Used in Valuation Stephen H. Penman The web page for Chapter Three runs under the following headings: What the Chapter is Doing Historical Multiples Historical Equity and Bond Returns The Selection of Comparable Firms Screening Engines Calculating Multiples Unlevered (or Enterprise) Multiples Beware of Price-to-ebitda Ratios P/E Ratios and Dividends Price-to-sales
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components 8 Economic Analysis 8 Recommendation 9 Executive Summary In 1999, the CEO of Companhia Cervejaria Brahama (largest brewer in Brazil) was considering the bit for Antarctica (second largest brewer in Brazil). The purpose for this merger was to exploit the potential synergies and avail the economies of scale. The secondary motive was to raise the barriers to entry to the industry especially for the multinational firms. For the purpose of acquisition, the valuation for both of the companies
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2.00 Silver lake $ 1.40 Michel dell $ 0.75 Total $ 25.05 net debt/EBITDA 3.7 x A valuation for Dell was done based on projected cash flow for the next 5 years. These projected cash flows assume growth rate for Dell to be 7% and WACC to be 8.5%. The valuation is based on best case scenarios as WACC of 8.5% is very low for Dell which is rated junk by S&P. Also, we have considered really high growth rate of 7% during restructuring
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weeks. Traditionally, investment experts have used one of two approaches for asset valuation. One is “the firm-foundation theory”, and the other is “the castle-in-the-air theory”. The interesting point is, two theories appear to be mutually exclusive. The firm-foundation theory insists that each investment instrument has a firm anchor of something called “intrinsic value”, which can be determined by careful analysis of present conditions and future prospects. Williams, writer of “The Theory of Investment
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