explain all the summary statistics for Tesla Motors as well as all assumptions used in the equity valuation. This report serves to offer a broad overview of the general performance of the company and an analysis of its true value. It can be divided into the following sections, profitability statistics, liquidity statistics, solvency statistics, DCF valuation, relative valuation, and technical analysis. Probability Statistics: Tesla Motors does not currently have very promising profitability
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participations in leveraged buyouts. Importance of Terminal Value:Terminal value is the lump-sum of cash flows at the end of a stream of cash flows. It is important when trying to value a firm because that are present in the valuation of just about every asset and in the valuation of stocks and whole companies terminal value is usually a very big value driver. The importance of TV is showcased when comparing terminal value with market prices as it is important to remember that only 10-20% of value of
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should: 1) Undergo an IPO 2) Remain independent 3) Sell the company In order to provide a recommendation for Tom and Tom I will first need to conduct a SWOT analysis to assess the company’s strength, weakness, opportunities, and potential threats. Then I will weigh the pros and cons of the three options listed above. SWOT Analysis Strength Nantucket Nectars' numerous strengths have led to their success. They produce all natural products that have a great taste, have a very strong management
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Aswath Damodaran INVESTMENT VALUATION: SECOND EDITION Chapter 1: Introduction to Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless Rates and Risk Premiums Chapter 8: Estimating Risk Parameters and Costs of Financing Chapter 9: Measuring Earnings Chapter 10: From Earnings to Cash Flows Chapter 11: Estimating Growth Chapter
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AFIN310 Equity Analysis Assignment General Electric (GE) historic business model GE has a business model that has been successful over many recent decades. In GE’s Historical business model, Jack Welch and Jeff Immelt as executives for GE have been focused on trying to expand the business as well as improving performance internally. The key features to GE’s successful business model lies within their organizational culture, core competencies and specific strategies used. GE’s organizational culture
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Valuation of Encore International The by Marc Scott Raymas BUS505: Finance Instructor: Dr. Paulone May 21, 2016 INTRODUCTION As a financial analyst, you may be tasked with an assignment from the Chief Financial Officer (CFO) to perform a particular task. When assigned a task, it must be completed and scrutinized with the goal of having zero errors. Your report may be the deciding factor in your employer’s decision to continue or alter
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Approaches to Valuation Discounted cashflow valuation, relates the value of an asset to the present value of expected future cashflows on that asset. Relative valuation, estimates the value of an asset by looking at the pricing of 'comparable' assets relative to a common variable like earnings, cashflows, book value or sales. Contingent claim valuation, uses option pricing models to measure the value of assets that share option characteristics. Aswath Damodaran 3 Valuation Models
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data as his main research tool, Elliott discovered that the ever-changing path of stock market prices reveals a structural design that in turn reflects a basic harmony found in nature. From this discovery, he developed a rational system of market analysis. Elliott isolated thirteen patterns of movement, or "waves," that recur in market price data and are repetitive in form, but are not necessarily repetitive in time or amplitude. He named, defined and illustrated the patterns. He then described
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Investment Principles and Analysis Trinity University FNCE 3352 Spring 2010 INSTRUCTOR: Carl M. Hubbard, Ph.D., CFA Office: CGC N3l6; phone 999-7283, carl.hubbard@trinity.edu OFFICE HOURS: 9:30 – 11:30 MW; 2:30 – 4:00 TTh; Other times available by appointment. TEXTBOOK: Zvi Bodie, Alex Kane, and Alan J. Marcus. Essentials of Investments, 7th Edition. New York: McGraw-Hill, 2008. CALCULATOR: Texas Instruments BAII Plus Calculator COURSE OBJECTIVES The learning objectives for students
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Chapters 6 – Valuing Stocks Slide 1 Stock Valuation Book Value • Equity = Assets less Liabilities Liquidation • Sale value of assets less payment of outstanding liabilities • May represent amount greater or less than book value of equity Going Concern (A firm likely to continue in business) • Extraordinary earning power of assets (ROA/ROE) - Book value represents only cost less financing plus past undistributed earnings
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