2024 – Valuation of company stock Expectation for the assignment Evaluate the qualities of effective corporate governance

Valuation of company stock

Expectation for the assignment:

• Evaluate the qualities of effective corporate governance.

• Use technology and information resources to research issues in advanced financial management.

• Write clearly and concisely about advanced financial management using proper writing

mechanics.

 

Introduction

So far in this Advanced Financial Management course, we’ve offered you an assortment of tools designed to enhance your ability to value a business. You’ve learned how to assess a business through the lens of several competitive-advantage frameworks, you’ve learned numerous ways to quantify the value of a stock, and you’ve become familiar with the thinking behind valuing a company’s fixed income. Now, as you might have suspected, it’s time to implement some of this new-found knowledge.

Company: Qualcomm

Review:

• Use Morningstar for data http://www.morningstar.com/stocks/XNAS/QCOM/quote.html and http://www.morningstar.com/stocks/XNAS/CSCO/quote.html
• If need to replace Morningstar, ensure all financial analysis including bonds are available
• Financial Statements
• Investor Presentations
• Industry Reports
• Newspaper/Magazine Articles
• Consumer Reviews Etc.

Create a comprehensive analysis includes:

1. Analyze the company’s competition advantages, including Porter’s 5 forces, the Sellers framework.

2. Analyze the company’s stock value. This will include analysis of a company’s present P/E, PEG, P/B, and P/S multiples versus competitors in the industry and versus historic multiples going over the past 1, 3, 5 and 10-year periods.

3. Talk about the competitive moat, how to grow / sustain the moat, as a manager how would you analyze against current industry/sector performance and one main competitor i.e. QCOM vs Industry/Sector average (Telcom Equipment / Technology) and QCOM vs Competitor (CSCO – Cisco)

4. Also include summary about price to book value, any time the price has gone below book value, stock splits, divendend payout, stock buyback, investor emotion, volatility between QCOM and Cisco

5. You are expected to offer an opinion as to the current pricing of the company’s stock. You are also welcome to perform a DCF analysis utilizing appropriate growth rates and discount rate

6. Assess the company’s fixed-income makeup. Please identify the bonds that the company has

issued, the amounts of those bonds, their structure, their various due dates, and their various interest rates. You may also want to identify their market values versus par values

 

Guidelines:

– Write in a logical, well-organized, conventional business style. Use Times New Roman font size

12 or similar, double-space, and leave ample white space per page. No more than 5 pages not including title and references

– All references must follow APA style guide, and works must be cited appropriately.

– On the first page or in a header, include the title of the assignment, the student’s name, the

professor’s name, the course title, and the date. Title and reference pages are not included in the assignment page length.

 

Readings:

– Mauboussin & Bartholdson, “Measuring the Moat”

− Boyd & Quinn, “Financial Metrics In Wide-moat Firms”

– Tsang & Xydias, “Cheapest Stocks Since 1995 Show Cash Exceeds Market (Update5)”

− Durell, “How to Use the P/E Ratio”

− MoneyChimp, “Graham-style Formulas”

 

– Book: Brigham, E. & Ehrhardt, M. Financial management: Theory & practice (14th ed.). South-Western,Cengage Learning.