PART – 1: EQUITY VALUATION
Executive Summary
Equity valuation is the determination of a company’s total value, which involves more than examining revenue and assets figures in the financial statements. Several financial indicators are taken into account for practicing equity valuation. It provides an accurate perspective, to the shareholders, creditors and prospective investors, of the company’s true value at any given time (Christensen &Feltham, 2009).The data point related to the value of a company are valuable for the stakeholders who need to determine the performance of the stock.
In investment and portfolio management, valuation is one of the most significant contributor. One needs to sell overvalued and buy undervalued securities to achieve high return on investment. Therefore, it is critical to evaluate the ‘intrinsic value’ (fundamental value or fair value) of a security (Koller et al. 2010).Stocks valuation are based on two models: Relative valuation models and Absolute valuation models. A Relative valuation model compares metrics and multiples of a firm with other companies within its relevant sector or industry. An absolute valuation model, based on an absolute estimate, values a firm with an intrinsic value. The absolute valuation models …show more content…
(CL) is a multinational company based on consumer products. It is focused on Oral Care, Home Care, Personal Care and Pet Nutrition. According to the Annual Report of 2011, the company’s mission is to deliver superior shareholder returns and consistent business results by providing products to consumers globally, that make their lives more enjoyable and healthier. The business strategy of the company is closely defined to increase and develop positions in market leadership in key product categories. On their capacity to maximize, the strong global equities and organizations core competencies, the product categories are prioritized to deliver sustainable long-term growth (Annual Report,
Executive Summary
Equity valuation is the determination of a company’s total value, which involves more than examining revenue and assets figures in the financial statements. Several financial indicators are taken into account for practicing equity valuation. It provides an accurate perspective, to the shareholders, creditors and prospective investors, of the company’s true value at any given time (Christensen &Feltham, 2009).The data point related to the value of a company are valuable for the stakeholders who need to determine the performance of the stock.
In investment and portfolio management, valuation is one of the most significant contributor. One needs to sell overvalued and buy undervalued securities to achieve high return on investment. Therefore, it is critical to evaluate the ‘intrinsic value’ (fundamental value or fair value) of a security (Koller et al. 2010).Stocks valuation are based on two models: Relative valuation models and Absolute valuation models. A Relative valuation model compares metrics and multiples of a firm with other companies within its relevant sector or industry. An absolute valuation model, based on an absolute estimate, values a firm with an intrinsic value. The absolute valuation models …show more content…
(CL) is a multinational company based on consumer products. It is focused on Oral Care, Home Care, Personal Care and Pet Nutrition. According to the Annual Report of 2011, the company’s mission is to deliver superior shareholder returns and consistent business results by providing products to consumers globally, that make their lives more enjoyable and healthier. The business strategy of the company is closely defined to increase and develop positions in market leadership in key product categories. On their capacity to maximize, the strong global equities and organizations core competencies, the product categories are prioritized to deliver sustainable long-term growth (Annual Report,