Using the analytical tools each of you will learn, each student will prepare an
analysis of a public company. The company will be evaluated from the perspective of both fixed income
securities (e.g., would you buy the bonds in the medium to long-term?) and equity securities (e.g., would
you buy or sell the stock in the medium to long-term?).
Approaches to the analysis should include:
Current state of the financial health of the company
Trends in the financial health over recent years and potentially into the future
Comparison of the subject company with competitors and/or industry sector
Analysis of the subject company’s industry sector
Factors affecting the industry such as product, technical innovation, regulation, economic cycles, etc.
Assessing the company’s position within the industry context
Does it have a clear advantage vis a vis other industry participant?
Is it subject to extreme competition or pricing press.
Sample Solution