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Fin 504 Module 7 Project 2 (Individual-Based)




Question;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 non-financial 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.


Paper#49070 | Written in 18-Jul-2015

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