Company Valuation Report
University of waikato
Company Valuation Report
Alice Luo
Wendy Ruan
Emily Xie
Constance Yan
Date – 14/09/2014
Contents
1.0 Introduction…………………………………………………………………………………………….. .1
2.0 Literature Review………………………………………………………………………………………..1 2.1 Asset Size……………………………………………………………………………………………..1 2.2 Total Operating Income........................................................................................................................2 2.3 Impaired asset expense as % of average loan assets………………………………………………….2 2.4 ROA / ROE …………………………………………………………………………………………..3 2.5 Net interest margin……………………………………………………………………………………3 2.6 Loan asset growth…………………………………………………………………………….………4 2.7 Selected Companies from Different Industries……………………………………………………….5
3.0 Methods………………………………………………………………………………………………….5
4.0 Results……………………………………………………………………………………………………6
5.0 Conclusion and Recommendations………………………………………………………………………8
References
1.0 Introduction
This report is to provide overall description of given data set and then select representative companies from different industries to research company valuation. There are four sectors and our group chooses five companies from the dataset. The research purpose for this paper is to analyze the companies’ performance by making comparison and contrast among different situations which involves different financial figures. The method for the report is using excel function, pivot table, and chart to deal with the financial data. After doing research, our group also puts forward some recommendations to change loan assets or asset size by different company types to improve company performance.
2.0 Literature Review
2.1 Asset Size
There is a positive correlation between asset size and company performance. Asset size refers to the total market value of the securities in a mutual fund’s portfolio (Investopedia, 2014, p 1). According to some research, the concave quadratic relationship between size and performance
Company Valuation Report
Alice Luo
Wendy Ruan
Emily Xie
Constance Yan
Date – 14/09/2014
Contents
1.0 Introduction…………………………………………………………………………………………….. .1
2.0 Literature Review………………………………………………………………………………………..1 2.1 Asset Size……………………………………………………………………………………………..1 2.2 Total Operating Income........................................................................................................................2 2.3 Impaired asset expense as % of average loan assets………………………………………………….2 2.4 ROA / ROE …………………………………………………………………………………………..3 2.5 Net interest margin……………………………………………………………………………………3 2.6 Loan asset growth…………………………………………………………………………….………4 2.7 Selected Companies from Different Industries……………………………………………………….5
3.0 Methods………………………………………………………………………………………………….5
4.0 Results……………………………………………………………………………………………………6
5.0 Conclusion and Recommendations………………………………………………………………………8
References
1.0 Introduction
This report is to provide overall description of given data set and then select representative companies from different industries to research company valuation. There are four sectors and our group chooses five companies from the dataset. The research purpose for this paper is to analyze the companies’ performance by making comparison and contrast among different situations which involves different financial figures. The method for the report is using excel function, pivot table, and chart to deal with the financial data. After doing research, our group also puts forward some recommendations to change loan assets or asset size by different company types to improve company performance.
2.0 Literature Review
2.1 Asset Size
There is a positive correlation between asset size and company performance. Asset size refers to the total market value of the securities in a mutual fund’s portfolio (Investopedia, 2014, p 1). According to some research, the concave quadratic relationship between size and performance
References: Altman, E. (2012). FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY. The Journal of Finance, 23, 589-609. DOI: 10.1111/j.1540-6261.1968.tb00843.x Bodson, L., Cavenaile, L Fitch Ratings. (2009). The Fitch Universal Format on BankScope. Retrieved from http://www.investopedia.com/terms/i/impairedasset.asp Foos, D., Norden, L., & Weber, M Hagel, J., Brown, J. S., & Davison, L. (2010). The best way to measure company performance. Retrieved from http://blogs.hbr.org/2010/03/the-best-way-to-measure-compan/ InvestingAnswers Investopedia. (2014). Asset Size. Retrieved from http://www.investopedia.com/terms/a/asset_size.asp Investopedia Investopedia. (2014). Operating Income. Retrieved from http://www.investopedia.com/terms/o/operatingincome.asp Johnson, R Megginson, W. L., & Smart, S. B. (2008). Introduction to corporate finance. South Western: Cengage Learning. Qfinance. (2014). Understanding Impairment Accounting: What It Is and When It Is Used. Retrieved from http://www.qfinance.com/accountancy-checklists/understanding-impairment-accounting-what-it-is-and-when-it-is-used Ridgill, A ReadyRatios. (2014). Net interest margin. Retrieved from http://www.readyratios.com/reference/profitability/net_interest_margin.html Schranz, M