Corporate Finance: Stock Valuation and Analysis

Stock Valuation and Analysis

Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest.

Assignment Steps

Resources: Yahoo Finance

Select a Fortune 500 Company from one of the following industries:

Pharmaceutical
Energy
Retail
Automotive
Computer Hardware
Manufacturing
Mining

Access Yahoo Finance and enter the company name.

Review the financial information and statistics provided for the stock you selected and answer the following:

What is the ticker symbol of the company you chose?
What is the Current Stock Price?
What is the Market Cap for the stock you chose?
What is the Price to Earnings Ratio?
What is the Dividend and Yield?
What is the Enterprise Value?
What is the Beta?
Was there a Stock Split, and if so, when?
What was the closing stock price for the last 5 days?
What was the 52 Week High for this stock?
What is the Book Value per Share?
What type of rating are analysts recommending (i.e. buy, hold, etc.)?
What is the target price analysts are predicting for this stock?
What is the analyst's average revenue estimate for next year?
What are some of the significant news items and press releases made by the company over the last year?

Explain in 700 words why you would or would not recommend investing in this stock.

Describe the relationship between the value of the stock and the price to earnings ratio.
What information does the Market Capitalization (Market Cap) and Beta provide to the investor?

Grading Guide

Content	Met	Partially Met	Not Met	Comments:
Selected a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining
Accessed Yahoo Finance and entered the company name.
Reviewed the financial information and statistics provided for the stock selected and answered the following: What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield? What is the Enterprise Value? What is the Beta? Was there a Stock Split, and if so, when? What was the closing stock price for the last 5 days? What was the 52 Week High for this stock? What is the Book Value per Share? What type of rating are analysts recommending (i.e. buy, hold, etc.)? What is the target price analysts are predicting for this stock? What is the analyst’s average revenue estimate for next year? What are some of the significant news items and press releases made by the company over the last year?
Explained in 700 words why you would recommend/not recommend investing in this stock.
Described the relationship between the value of the stock and the price to earnings ratio, including what information the Market Capitalization (Market Cap) and Beta provides to the investor.
		Total Available	Total Earned
			#/5

Writing Guidelines	Met	Partially Met	Not Met	Comments:
The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.
Intellectual property is recognized with in-text citations and a reference page.
Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed including spelling and punctuation.
		Total Available	Total Earned
			#/2