The company/Stock I picked: (Ford motor and General Motors)
To answer the following 7 questions, the writer should fill in the excel file for two companies (F and GM) first. The excel files (Valuation and benchmarking Template) I will upload later, please fill in the YELLOW highlight which you can find in 10K. After entering the number, all the data will be automatically calculated. (I also provide some jpg for you, those are helpful to the paper). In the excel:
1) Projecting income statement (5 years)
2) Dividend discount model for each company
3) Free cash flow model for each company 4) Relative valuations
For the written part: 1) Who has been and who is the superior competitor? Why?
2) Are the companies presently valued properly and why or why not?
3) What are the growth prospects for the companies and which company is a better investment to add to an investment portfolio and why?
4) Which company has superior qualitative and quantitative accounting metrics? Why?
5) What non-accounting factors influence your prediction and decision? Why?
6) Which company exhibits superior corporate governance metrics and corporate social responsibility and how did this influence your decision?
7) What recent activities did the companies undertake, e.g. M&A activity that influenced your decision? *Citations & References (No Particular format) *No minimum on exhibits
Deliverable: 1. Two excel files with filled in data (one is for F, one is for GM) 2. written part: 4-5 pages answer to the 7 questions
Sample Solution
