Portfolio Theory and Equity Analysis

Individual Report (70%)

The company is GOOGLE

Now do an Equity Analysis of the company and write a 3000 words report on the same. The contents of the report should include the items mentioned below. The numbers in parenthesis indicate the weight of marks allocated to each section. All sections are compulsory.

1. Introduction (10%)

In this section introduce the company and its business briefly. What do they do? What are their main products and markets? Where do they derive their profits from? Identify their main competitors.

2. Management Analysis (10%)

In this section analyse the company’s management and their impact on Firm Performance. Who are the managers and key employees? Identify their strengths and weaknesses. What is the shareholding pattern and its impact on governance? Past actions of management and corporate governance score.

3. SWOT analysis (20%)

In this section do a detailed analysis of the strengths, opportunities, weaknesses and threats for the firm.

4. Ratio Analysis (15%)

for the last 3 YEARS

In this section analyse the company performance using ratios based on the financial statements. Focus on the following set of ratios: Liquidity, Efficiency, Profitability, Leverage and Cashflow. You can use the ratios discussed in class or any other ratios you deem suitable for the analysis. Kindly ensure that you include in your analysis a comparison with competitors and industry averages. Also do a time trend analysis i.e. compare company performance with itself over time.

5. Relative Valuation (5%)

In this section use the relative valuation techniques learnt in class to value your company. Describe & justify what you do clearly and comment on the results.

6. Conclusion (10%)

In this section discuss your conclusion about the company’s future prospects based on all the analysis done in previous sections. Finally, make Buy/Sell/Hold recommendation for the company’s shares and justify your recommendation.