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Discussion on Urban Outfitters

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Question;MY COMPANY IS URBAN OUTFITTERSFor each answer, you must write a 150-word analysis (range: 125 ? 175 words) that includes at least one quantitative or qualitative measure justifying your opinion. For example, with question 4c, you could include a quantitative chart of earnings reports over several fiscal years. Likewise, for question 4d, you could include a qualitative assessment of your company?s management or product strategy by citing sources from recent product announcements, business acquisitions, or key executives hired by the company.Questions to determine the attractiveness of the business(http://www.aaii.com/computerizedinvesting/article/valuing-stocks-the-warren-buffett-way)4d: Are earnings strong and do they show an upward trend? Buffett looks for companies with strong, consistent, and expanding earnings. We screen for companies with seven-year earnings per share growth greater than 75% of all firms. To help indicate that earnings growth is still strong, we also require that the three-year earnings growth rate be higher than the seven-year growth rate. Buffett seeks out firms with consistent earnings. Follow-up examinations should include careful examination of the year-by-year earnings per share figures. As a simple screen to exclude companies with more volatile earnings, we screen for companies with positive earnings for each of the last seven years and latest 12 months.4e: Does the company stick with what it knows? A company should invest capital only in those businesses within its area of expertise. This is a difficult factor to screen for on a quantitative level. Before investing in a company, look at the company?s past pattern of acquisitions and new directions. They should fit within the primary range of operation for the firm.

 

Paper#54541 | Written in 18-Jul-2015

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