Assessment 1:

Report Weight: 20%

Type of Collaboration: Group
Due: Week 12
Length: 2,000 words
Curriculum mode: Report
Overview: The objectives of the report are:
– To encourage students to study consistently throughout the semester.
This assessment in its entirety will be used to measure CLO 1 (Written).

Submission: You are required to submit a written report of your Group Project in week 12. Please
submit a hard copy of your written report to teaching academic. Please e-mail soft copy of your
written report and excel calculation files to teaching academic.

GROUP PROJECT
Company Analysis Assume that you are an analyst and have been approached by a group of
investors to advise them on an investment in a particular company. They want you to analyse the
data you collect and make recommendations as to the potential return on their investment. Your
clients need a written report. Groups should select one company listed on the Vietnamese Stock
Market and collect publicly available information and conduct an analysis of the firm’s ordinary
shares in order to provide a buy, hold or sell recommendation for a long-term investor based on
analysis.
Your analysis will have a brief introduction about the company, including its history, main
product(s), gross sales, net income, stock price movements, dividend payments, debt and equity
structure and the number of shares outstanding, etc. When you report the numbers, make sure you
include several years’ data to see whether there is a trend. Some graphs may be helpful.
Your analysis will include a valuation based on the present value of a projection of the firm’s future
free cash flows. The projected free cash flows will be generated from a pro forma model of the
firm’s financial statements. The pro forma financial statements will be driven by sales projections
which may be forecast based on some consideration of relevant factors. The valuation must also
include a sensitivity analysis.
Your recommendation must be supported by your analysis.
You need to submit the Excel spreadsheet of your valuations.
To complete your company analysis:
Research the company. Start with the company's most recent annual reports. You can get a lot of
information online at websites. Most libraries also have some publications that you can use. Your
research should also include the industry in which the company operates, including its main
competitors.
Analyse the financial/accounting data and the other information you gathered.
Make a recommendation based on your research and analysis. Your analysis must support your
recommendation. This is the most important part of the project.
Marking criteria and standards
The entire score for this CLO will provide the measurement for CLO 1 (Written)
A brief introduction about the company, including its history, main product(s), gross sales, net
income, stock price movements, dividend payments, debt and equity structure and the number of
shares outstanding, etc. When you report the numbers, make sure you include several years’ data to
see whether there is a trend. Some graphs may be helpful. (5 marks)
Your analysis will include a valuation based on the present value of a projection of the firm’s future
free cash flows. The projected free cash flows will be generated from a pro forma model of the
firm’s financial statements. The pro forma financial statements will be driven by sales projections
which may be forecast based on some consideration of relevant factors. The valuation must also
include a sensitivity analysis. (12 marks).
Your recommendation must be supported by your analysis. (3 marks)
Format
I am looking for a nice looking document as well as one that uses your financial skills well.
Unfortunately, in the real world, sometimes it is not what you say, but how you look that is
important -- I am looking for both. The valuation should be laser printed on nice paper. The PDF
should be similarly well laid out. You should have a title page and a table of contents, as well as a
cover page with the name of your company and names of the people in your group.
Finally, you need to cite all of the sources that you use. Please do not only use the Internet for your
sources. Both footnote citations and a reference page are required. Please make sure that you do not
plagiarize any of your sources.
I don't impose a specific template on the projects but I know that you are looking for some
guidance. The following is a suggested outline for your valuation. But you can opt in any templates
that you’re comfortable to work with.
1) Cover Page: listing the company and the members of the group.
2) Executive Summary: listing your results and conclusions.
3) Description of the Company: describing the company, including its history, main
product(s), gross sales, net income, stock price movements, dividend
payments, debt and equity structure and the number of shares
outstanding, etc. By reading this section, the reader should be able to
understand what the company does, where it has been and it is going.
While this section should relatively short, make sure that you hit the
highlights.
5) Industry Analysis: describing the industry, the growth of the industry, competitive
pressures and threats, future prospects for your industry, etc. By
reading this section, the reader should understand your industry, what
it does, where it has been and where it is going. You should also put
your company in its context within the industry.
6) Financial Analysis: showing 3 years of financial data, trends, etc. From looking at this
section, the reader should be able to get a feel for the company's
financial health.
7) Financial Forecasts: projecting the firm into the future for 5 years. All projections,
forecasts and estimates should be supported, with reasons given for
projected growth/decline rates. (In other words, don't assume a
growth rate without providing some justification for your
assumption.) This section can be presented as a separate section or
combined with the previous section.
8) Valuations: Use FCF model. You should provide enough supporting data and
descriptions so that the reader can understand your methods and
follow your valuations.
9) Risk Analysis: The valuation must also include a sensitivity analysis
10) Conclusion: stating your valuation based on the evidence provided and how you
determined this value and summarizing the information in the
valuation. The conclusion should guide the reader as to how you
determined your final valuation.
11) References: A list of all of your sources, including those just used for background
material.