Questions - Hexcel is the Company Name.
1) Research and describe your company's competitive strengths, economic moats and competitive strategies.
2) Look up the beta on your stock on Yahoo /finance, using the historical risk premium of 6% and risk free rate of 4%, calculate the expected return of your stock under CAPM.
3) a) Perform a ROE analysis on your company.
b) Calculating the FCF.
c) Calculating capital weight and WACC.
4) Use the three valuation models to value your stock:
- Give rationales for your input assumptions such as growth rate and discount rate;
- Calculate the stock fair value using the models;
- Set price target based on the weighted average value
- Recommend buy / sell decision based on the criteria
5) A) Explains how diversification works to reduce overall risk of a portfolio;
B) Give an example of a diversified portfolio.
C) Explains how people in the 25 - 35 age groups may choose their efficient portfolios on the Efficient Frontier.
- Stock valuations
- Setting price target
- Investment summary and recommendation.