Business Valuation and Financial Analysis-
Company : Blackmore
Assessment task 1: Assignment (Group)
Intent: This assignment assesses the students' understanding of the concepts of business valuation and their ability to consider the practical applications. It will also allow students to demonstrate that they can use both spreadsheets and word processing packages to tackle practical valuation problems.
Task: The group (up to five members) project completed in two parts requires you to conduct an analysis of a business. A key feature of the project is that it requires you to identify and obtain the relevant information. Thus, in addition to being evaluated on your ability to apply the tools of analysis described in the course, you will also be evaluated on your ability to identify and obtain the relevant information. Your assignment should use only publicly available information, and you should provide a reference list of the information you use. Do not use inside information obtained from personal company contacts etc. Choice of company: You will choose one company from the list on UTSOnline. Valuation and assessment: Your group will evaluate and report (in two parts) on your chosen
company as though you were a prospective management consultant.
Part One - The first part of your report will contain the following:
1. Macro economic Analysis - Describe the firms economic environment and evaluate how this has impacted historic firm performance and is likely relevant to future performance.
2. Industry Analysis - Perform an industry analysis and evaluate the level of competition in the industry or industries that your firm operates in.
Part Two - The second part of your report will contain the following:
1. Business Strategy Analysis - Identify the key success factors and the key risks of the firm's strategy. Discuss the sustainability of profits generated by the strategy
2. Accounting Analysis - Assess the degree to which the firm's accounting reflects the underlying business reality. Identify any
accounting distortions and evaluate their impact on profits and the sustainability of profits.
Assessment task 2: Assignment (Individual)
Intent: This assignment evaluates the students' understanding of the concepts of business valuation and their ability to consider the practical applications.
Task: Using the company and analysis from your group assignment, provide the following:
1. Reformatted Financial Statements and Financial Analysis - Reformat at least the last 5 years of your company's financial statements. Use ratio analysis and cash flow analysis to evaluate the current and past performance of the business and assess its sustainability.
2. Prospective Analysis - Forecast future financial performance. Use the four valuation models outlined in class to produce an
estimate of firm value, and compare to stock price. Perform sensitivity analysis and discuss the results.
3. Application - Using your sensitivity analysis, and as a potential management consultant to your chosen firm, provide a discussion as to the possible opportunities for improvement, and potential challenges for your firm. Provide remedies for these concerns. You should be quite specific in any recommendations you make.
Assessment task 3: Final Exam
Intent: This exam, consisting of practical and theory questions, will test students understanding of the theory and ability to apply the theory to business valuation and financial analysis.
Required texts-
Palepu, K, Healy, P and Bernard, V (2013) Business Analysis and Valuation using Financial Statements: Text, 5th edn, Southwestern, Canada.
Faculty of Business (see URL), Guide to Writing Assignments, Faculty of Business, University of Technology, Sydney. https://www.business.uts.edu.au/teaching/guide/guide.pdf
References-
Penman, S 2004, Financial Statement Analysis and Security Valuation, McGraw-Hill, New York.
Attachment:- Data.rar