Bae System
BAE SYSTEMS PLC
Raghav Pandey
070026065
Word Count: 5,483
ACC4053 | Financial Analysis
CONTENTS
1. Introduction
2. Valuation of the Company
2.1 An evaluation of BAE Systems’ current position and its future prospects
2.2 Assessment of the value of BAE Systems based on the application of suitable cash flow based valuation techniques
2.3 Assessment of the value of BAE Systems based on the application of suitable accounting based valuation techniques
3. Comparison of the valuation with the ‘market’ valuation
4. Appendices 4.1 Appendix 1: PEST Analysis 4.2 Appendix 2: SWOT Analysis 4.3 Appendix 3: Porter’s Five Forces Model 4.4 Appendix 4: Key Financial Ratios 4.5 Appendix 5: Weighted Average Cost of Capital 4.6 Appendix 6: Shareholder Value Analysis 4.7 Appendix 7: Economic Profit 4.8 Appendix 8: Dividend Discount Model 4.9 Appendix 9: Price Earnings Ratio 4.10 Appendix 10: Asset Valuation Method 4.11 Appendix 11: Share Price Movement
5. References
1. Introduction
$1,620bn. The world’s total defence and military expenditure in 2010. $687bn. United States’ military expenditure in the same year. Switzerland’s GDP in 2010 was $523bn, a country ranked 19th in the world. The figures themselves place into context the scale of global defence spending and one set of companies which have benefitted the most from it are the defence suppliers. BAE Systems is one of them.
BAE Systems today is a global defence, security and aerospace company. The group is based in the United Kingdom and is listed on the London Stock Exchange where it a constituent of the FTSE 100 index. The most recent financial year end of the company is 31 December 2010.
The following report presents an analysis of BAE Systems and the industry it operates in including its competitors. The paper evaluates the company in terms of its current position and future prospects using various strategic analytical models. The objective of the report also is to assess the
Raghav Pandey
070026065
Word Count: 5,483
ACC4053 | Financial Analysis
CONTENTS
1. Introduction
2. Valuation of the Company
2.1 An evaluation of BAE Systems’ current position and its future prospects
2.2 Assessment of the value of BAE Systems based on the application of suitable cash flow based valuation techniques
2.3 Assessment of the value of BAE Systems based on the application of suitable accounting based valuation techniques
3. Comparison of the valuation with the ‘market’ valuation
4. Appendices 4.1 Appendix 1: PEST Analysis 4.2 Appendix 2: SWOT Analysis 4.3 Appendix 3: Porter’s Five Forces Model 4.4 Appendix 4: Key Financial Ratios 4.5 Appendix 5: Weighted Average Cost of Capital 4.6 Appendix 6: Shareholder Value Analysis 4.7 Appendix 7: Economic Profit 4.8 Appendix 8: Dividend Discount Model 4.9 Appendix 9: Price Earnings Ratio 4.10 Appendix 10: Asset Valuation Method 4.11 Appendix 11: Share Price Movement
5. References
1. Introduction
$1,620bn. The world’s total defence and military expenditure in 2010. $687bn. United States’ military expenditure in the same year. Switzerland’s GDP in 2010 was $523bn, a country ranked 19th in the world. The figures themselves place into context the scale of global defence spending and one set of companies which have benefitted the most from it are the defence suppliers. BAE Systems is one of them.
BAE Systems today is a global defence, security and aerospace company. The group is based in the United Kingdom and is listed on the London Stock Exchange where it a constituent of the FTSE 100 index. The most recent financial year end of the company is 31 December 2010.
The following report presents an analysis of BAE Systems and the industry it operates in including its competitors. The paper evaluates the company in terms of its current position and future prospects using various strategic analytical models. The objective of the report also is to assess the
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