Burberry Plc Research Report
Burberry PLC Equity Research Report
Applied Financial Research
Weihan Wong CID 00607866 August 2010
Client Specification
The client is either a retail or institutional investor seeking to gain an in-depth insight into the profile, valuation, price, risks and growth potential of the equity of the specified company Burberry PLC. The client would expect an analysis of the firm’s business activities, its strategy and its future growth drivers. He would also expect a detailed analysis of the firm’s financial performance and a valuation of the firm using several different methods. The client also expects a brief industry analysis, identification of the firm’s main competitors and the firm’s relative operating performance to its competitors. A forecast of the financial performance of the firm over the next 3 years is also required. This forecast of the financial performance should be fed into the DCF analysis to produce an implied equity value per share. An Excel file with the DCF analysis should be provided. This file should include a sensitivity analysis on the implied equity value. Lastly, based on all the analysis conducted, the client expects an investment recommendation on whether to buy, sell or hold the stock of the firm.
Table of Contents
Summary ................................................................................................................................................. 1 Historical Background ............................................................................................................................. 2 Company Description .............................................................................................................................. 2 Revenue Analysis .................................................................................................................................... 3 Industry Analysis
Applied Financial Research
Weihan Wong CID 00607866 August 2010
Client Specification
The client is either a retail or institutional investor seeking to gain an in-depth insight into the profile, valuation, price, risks and growth potential of the equity of the specified company Burberry PLC. The client would expect an analysis of the firm’s business activities, its strategy and its future growth drivers. He would also expect a detailed analysis of the firm’s financial performance and a valuation of the firm using several different methods. The client also expects a brief industry analysis, identification of the firm’s main competitors and the firm’s relative operating performance to its competitors. A forecast of the financial performance of the firm over the next 3 years is also required. This forecast of the financial performance should be fed into the DCF analysis to produce an implied equity value per share. An Excel file with the DCF analysis should be provided. This file should include a sensitivity analysis on the implied equity value. Lastly, based on all the analysis conducted, the client expects an investment recommendation on whether to buy, sell or hold the stock of the firm.
Table of Contents
Summary ................................................................................................................................................. 1 Historical Background ............................................................................................................................. 2 Company Description .............................................................................................................................. 2 Revenue Analysis .................................................................................................................................... 3 Industry Analysis
References: 1. Burberry PLC company annual reports, 2002 to 2010 2. Bain & Company Luxury Goods Worldwide Market Study, 2009 3. Capital IQ financial data, 05 August 2005 4. Barclays Capital European Luxury Goods equity research report, Dec 2009 5. Barclays Capital European Luxury Goods: Soft Luxury equity research report, Dec 2009 6. Google Finance financial data 7. Bloomberg financial data 8. Burberry PLC website 16