Nakilat
Student Name
University Affiliation Nakilat
Introduction
Investors are usually cautious when making an investment decision. Chiefly, investors look for opportunities that will eventually yield profits rather than a loss. In some cases, investors look for short-term investment opportunities whereby a volatile stock keeps moving up and down depending on its current environment and shareholder engagements in buying and selling the stock. In other cases, investors look for long-term and highly stable stocks that are presumed to yield massive returns over a period spanning decades. The purpose of this analysis is to analyze Qatar Navigation using relative valuation model with Nakilat and Gulf Warehousing Company provides the industry …show more content…
Recent country insights based on the third quarter performance allude to an economy that is faring well. In recent months, Qatar has viciously faced diplomatic quarrel with other Arab nations led by Saudi Arabia. In particular, Qatar is accused of engaging in terrorism funding, which led to sanctions being imposed on the country. Despite these sanctions, industrial production has continued to fare relatively well with a 7.4 percent increase in production in the third quarter of 2017 (Focus Economics, 2017). Nonetheless, this production capacity is a sharp decline from the production capacity a year before, which alludes to a 2.2 percent decline in production. The diplomatic row is causing the country’s economy to suffer, which translates to a reduction in investor …show more content…
In particular, the P/E ratio shows Qatar Navigation as an optimistic company as compared to the other two firms that have an average of 12.25. Likewise, Qatar Navigation has a higher performance in relation to P/CF since the industry average is 4.42 against the firm’s 6.3. Likewise, the industry average for P/ Sales is 4.13 while that of the firm is 22.5. Hence, the investor should consider buying more stock.
Conclusion
Apparently, Qatar Navigation’s performance is affected by the country’s politics and the industry’s performance. Being one of the largest freight, logistics and maritime service provider in Qatar, a shift in the performance affects the entire country. A reduction in sales and services in the country affects the industry in equal measure. In recent years, the industry has experienced challenges leading to lower production capacity, but the government’s massive investment in infrastructural development and the opening up of new destinations is proving viable for Qatar Navigation and all its subsidiaries. Valuation analysis should focus on buying more stock at this stage because the projections are better than that of the industry
Student Name
University Affiliation Nakilat
Introduction
Investors are usually cautious when making an investment decision. Chiefly, investors look for opportunities that will eventually yield profits rather than a loss. In some cases, investors look for short-term investment opportunities whereby a volatile stock keeps moving up and down depending on its current environment and shareholder engagements in buying and selling the stock. In other cases, investors look for long-term and highly stable stocks that are presumed to yield massive returns over a period spanning decades. The purpose of this analysis is to analyze Qatar Navigation using relative valuation model with Nakilat and Gulf Warehousing Company provides the industry …show more content…
Recent country insights based on the third quarter performance allude to an economy that is faring well. In recent months, Qatar has viciously faced diplomatic quarrel with other Arab nations led by Saudi Arabia. In particular, Qatar is accused of engaging in terrorism funding, which led to sanctions being imposed on the country. Despite these sanctions, industrial production has continued to fare relatively well with a 7.4 percent increase in production in the third quarter of 2017 (Focus Economics, 2017). Nonetheless, this production capacity is a sharp decline from the production capacity a year before, which alludes to a 2.2 percent decline in production. The diplomatic row is causing the country’s economy to suffer, which translates to a reduction in investor …show more content…
In particular, the P/E ratio shows Qatar Navigation as an optimistic company as compared to the other two firms that have an average of 12.25. Likewise, Qatar Navigation has a higher performance in relation to P/CF since the industry average is 4.42 against the firm’s 6.3. Likewise, the industry average for P/ Sales is 4.13 while that of the firm is 22.5. Hence, the investor should consider buying more stock.
Conclusion
Apparently, Qatar Navigation’s performance is affected by the country’s politics and the industry’s performance. Being one of the largest freight, logistics and maritime service provider in Qatar, a shift in the performance affects the entire country. A reduction in sales and services in the country affects the industry in equal measure. In recent years, the industry has experienced challenges leading to lower production capacity, but the government’s massive investment in infrastructural development and the opening up of new destinations is proving viable for Qatar Navigation and all its subsidiaries. Valuation analysis should focus on buying more stock at this stage because the projections are better than that of the industry