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##### Fin 504 Project 2

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c (Individual-Based), 14 points;This file contains two worksheets. The current worksheet contains the project description. Click the ?firmdata? tab below;for the second worksheet. The firmdata worksheet contains fundamental information on the 292 largest market cap nonfinancial service companies in the world. On a relative valuation basis, please identify the most undervalued firm and the;most overvalued firm in this sample. In making this analysis;?;You can pick any multiple you want to make this judgment. This multiple can either be an existing;multiple (like PE or EV/EBITDA), a modified version of an existing multiple (like PEGY) or a multiple;that you invent. (Just make sure that you put it through the consistency test). 2 pts;?;You should provide descriptive statistics (mean, minimum, maximum, median, etc) on the multiple you;use, on the variables which you think affect the multiple in your write-up. 2 pts;?;You have to show a scatter plot of that multiple against the key variable that you believe determine that;multiple (For example, if you pick PE ratios, the key variable will be expected growth rates) 3 pts;?;You have to control for differences in risk, growth and cash flow potential. A multiple regression is one;way to do this but there are other approaches as well. 3 pts.;?;You should make a table which shows the multiple linear regression results, and explain your results. 2 pts;?;Eventually show the most undervalued and most overvalued firms and explain why. 2 pts;You can use Microsoft Excel for your statistical analysis, and provide clear explanations. For example, you can watch the;video on how to use Excel to do the multiple linear regression analysis. In your report you should include the statistical;output and explain how you use it. You may rank the firms based on undervaluation or overvaluation. You needn?t list all;the firms. All the data you need is included in the firmdata worksheet, don?t search outside for data.;Attachments;Module07-Project_2__Individual-Based.xlsx (112.08 KB)

Paper#30780 | Written in 18-Jul-2015

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