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HUMANA IS THE COMPANY THAT HAS TO BE EVALUATED

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Question;HUMANA IS THE COMPANY THAT HAS TO BE EVALUATED;You can use the forecast or tweak as needed. Use the numbers;to run a sensitivity analysis;and provide a baseline stock valuation investment thesis using 9/20 as you stock price date and a 1-year time frame. The quality;of your investment thesis will be judged as much on the validity;of your assumptions as on the mechanics of the forecasting process. Do not get so involved in the mechanics of how the spread sheet formulas;are created and forget to apply common;sense to your forecasts.;This report;should be no more than 5 pages (outside of the financial model and appendix;materials) and should cover the components listed below. The weight placed on each section as it;relates to grading is shown within the parenthesis.;I.;InvestmentThesis(30%). Summarize the bet you are making in two or three sentences. How can Johns Hopkins Endowment;make money on this company;(e.g.earnings growth;multiple expansion,restructuring,etc.)?What is your level of conviction?;II.;Investment Positives and Risks(20%).;Focus on the 3-5 most critical risks;and prioritize the list.;III.;Financial Model.Explain;thees sence of the financial model(key drivers);(15%);IV.;Valuation. Use a valuation approach;and come up with acurrent valuation;(35%).Place current;valuation into perspective with his toric trends;the industry and the market;if possible.Consider;an alternative valuation technique such as a discounted cash flow,comparable companies,and private;companies.Perform at least one sensitivity/scenario analysis.;Valuation analysis,here are some pointer stoke ep in mind around;your Investment Thesis and some other critical;component so f your final paper. Final paper should be 5 pages max. Feel free to submit prior to the deadline.;1) Summarize the bet you are making;in just two or three sentences. Answer the question:?How can JHU make money in this stock??For;example,is this?;-;an earnings growth story;-;a multiple expansion story;-;an undiscovered value idea;-;acyclical recovery;-;are structuring;Is it a high-,medium-,or low-conviction name?;2) Makeyourspecific;recommendation.;-;Tell JHU where to buy the stock,including;any tactical considerations.;-;Giveyour1Gyearpricetarget,andanydownside;considerations;3) Investment Positives and Risks;Focus;on the issues that are critical to the investment.Be judicious by highlight in g the issues most likely to move the stock.;-;Distill the issues to no more than 3G 5 positives and 3G5 risks.Summarize;each factor with a single;openings statement and provide several;sentences of support.;-;Prioritize the lists from most important;to least,and try to assess the likelihood?and impact?of any risks.

 

Paper#47931 | Written in 18-Jul-2015

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