Bav Project Report Noni B

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Executive Summary -------------------------------------------------------------------------------- 3 1. Introduction of Background ------------------------------------------------------------------- 4 1.1 Introduction to Industry ------------------------------------------------------------------- 4 1.2 Prospect of Industry ------------------------------------------------------------------------ 5 1.3 Introduction to the Company ------------------------------------------------------------- 5 1.4 Prospect of Noni B ------------------------------------------------------------------- ------- 6 2. Accounting and Financial Analysis ----------------------------------------------------------- 7 2.1 Accounting Analysis ---------------------------------------------------------------------- -- 7 2.2 Financial Analysis --------------------------------------------------------------------------- 7 3. Forecast -------------------------------------------------------------------------------------------- 9 4. Valuation ------------------------------------------------------------------------------------------- 13 4.1 Estimate the cost of capital for the company ------------------------------------------- 13 4.2 Sensitivity Analysis -------------------------------------------------------------------------- 14 4.3 Determine the Value of Company -------------------------------------------------------- 14 4.4 Summary of Selection on Model ---------------------------------------------------------- 15 4.5 Sensitivity Analysis --------------------------------------------------------------------------- 16 4.6 Scenario Analysis ----------------------------------------------------------------------------- 16 5. Conclusion ------------------------------------------------------------------------------------------ 17 6. Reference -------------------------------------------------------------------------------------------- 19 7. Key Forecasts ---------------------------------------------------------------------------------------20 8. Appendix -------------------------------------------------------------------------------------------- 21

Executive Summary
Noni B, founded in 1977, is one of Australia's leading fashion retailers which provide stylish contemporary fashion and high-quality customer service for women. The aim of this project is to give a recommendation for investors by conducting a series of analysis. To start with, a overview of Noni B and general environment in clothing retailing industry would be provided. Then followed by accounting and financial analysis, which used to examine Noni B's accounting quality as well as its financial performance (through time-series analysis) during 2009-2011, in this part, the comparison with Noni B's competitor will also be performed via cross-sectional analysis. Moreover, a five-year forecast is illustrated via some graphs and tables and a detailed valuation will be showed following forecast through estimating the cost of capital, sensitivity analysis and scenario analysis, the tools also include WACC, discounted free cash flow model, as well as discounted abnormal earnings model. Finally, this report will conclude our findings and provide the investment recommendation. |RECOMMENDATION |BUY |HOLD |SELL | |HOLD |$ 0 |$0.83 |$1.43 |

Refer to Noni b’s stock price within the recent one year; the company maintains the current level of price around $0.80 which is exactly the same as the estimated under the normal assumption. Therefore, it is reasonable to recommend holding this stock. *Graph-changes on stock price of Noni b from 03/10/2011 to 03/10/2012.

1. Introduction of Background
1.1 Introduction to Industry
Clothing retailing industry...
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