Laura Martin Case Study

Good Essays
Laura Martin case study

Question 1- Laura Martin says she gets "paid to talk" - to whom is she talking?
Answer: Laura Martin is talking with investors. She would meet with many company representatives including the CEO, CFO, operating division chiefs and head of investor relations. She is in connections with these investors via telephone, fax, voice mail or email. It is approximately 900 individual per month.

Question 2- Given this crazy web of relationships, what are Martin's incentives? Can she anger the people who provide her information? What happens if she makes negative comments? Positive comments? When and how might she try to stand out from other analysts?

Question 3- What is happening to the role Martin plays in the economy? Will people like Martin exist in 30 years?
Answer: People like Martin Exist in 30 years because each year “All-America Research Team” vote inverstors’ decision and Martin got high ratings among them which criterion evaluate on 10 points, industry knowledge 8.09 rating, written reports 7.26 rating, stock selection 7.20 rating, earnings estimates 6.83 rating and special services including company visits and conferances 6.70 rating. Therefore Martin thinks that “accesibility is important, I have to basically be available 24 hours a day”. So, Martin is important player in the economy.

Question 4- What can be said of how good analysts are at their jobs?
Question 5- What are the tradeoffs in using multiples versus the DCF analysis?
Answer: DCF Valuation ; Martin forecast revenue for each year for from the firm’s financial data,select appropriate discount rate based on WACC, discount each cashflow back to it present value, obtain the terminal value through an application of terminal value multiple, using DCF method, Martin calculates the price of Cox’s share to be \$54.29. Multiple Valuation; Identify comparable firms that have growth, cashflow and risks similar to those of targetfirm whose value is in

You May Also Find These Documents Helpful

• Powerful Essays

financial data. 2. Select appropriate discount rate based on WACC 3. Discount each cashflow back to it present value 4. Obtain the terminal value through an application of terminal value multiple 5. You add these values together 6. Using this method, Martin calculates the price of Cox’s share to be \$54.29 Multiple Valuation: 1. Identify comparable firms that have growth, cashflow and risks similar to those of target firm whose value is in question. 2. Obtain the individual multiple or ratio of the…

• 4212 Words
• 14 Pages
Powerful Essays
• Powerful Essays

Multiples versus DCF analysis Multiples analysis is simple to understand and apply. The inputs for the multiple arepublicly available, though are vulnerable to accounting manipulation. Also, it isdifficult to obtain a truly comparable large sample of firms. Multiples analysis isbackward-looking, reliant on historical/current data to obtain multiples. It reflectsrelative value rather than the intrinsic value which DCF valuation produces.DCF analysis generates an intrinsic value as it relies on data…

• 1721 Words
• 7 Pages
Powerful Essays
• Good Essays

Laura Martin

• 1210 Words
• 5 Pages

Laura Martin: Real Options and the Cable Industry Group 13 Adarsh N (60) Gaurav Chand (82) Hemant Kumar (83) Prateek Gupta (99) Rohan Gupta (104) Sahil Jindal (105) Individual Contribution: 16.67% for all group members Strategic Financial Management Prof. K . Sudershan Ques 1. What is the role of Laura Martin? Consider the multiples analysis developed in Exhibits 2, 5 & 6. What assumptions does this analysis rely upon? Role: Laura Martin is a sell-side equity analyst at…

• 1210 Words
• 5 Pages
Good Essays
• Good Essays

providing treatment for Martin as soon as possible is best thing to do since the doctor catches the bladder cancer early before it spreads to other body parts, and cause more damage. As soon as Martin agrees and the doctor starts the procedure, the better chance Martin has of living a full life. Martin refuse to listen to anything the doctor and other health care team have to say. He clearly made his mind that the doctor has no idea what he is talking about and denying treatment. Martin also did not trust…

• 337 Words
• 2 Pages
Good Essays
• Better Essays

for equal employment opportunity in the workplace. Unfortunately, where Laura works, the company did not introduce maternity leave for women who have babies. They have to put resignation when they are pregnant, which is unfair to Molly. I do not think gender as discrimination, which played a part in this selection process. Laura was not discriminated against Ben 's gender, so as to refuse to point him as the receptionist. Laura as the supervisor, she was insisted to replace Molly with Amy before the…

• 920 Words
• 5 Pages
Better Essays
• Good Essays

MUI group/ Laura Ashley case study When Tan Sri Dr KP Khoo, Chairman of the MUI Group, a Malaysian conglomerate, saw that Laura Ashley was under financial strain, he thought the British company was worth saving. Download the PDF For easy printing you can download the PDF version of this case study. If you do not have Adobe Reader you can download a free copy. Laura Ashley fashion and home furnishings are popular all over the world. The company has come a long way since Laura and Bernard…

• 890 Words
• 4 Pages
Good Essays
• Good Essays

Laura Martin: Real Options and the Cable Industry Introduction Laura Martin, an equity research analyst for cable stocks, believes that the best way to value cable stocks is through creative methods such as real options and not through more traditional or typical valuation methods such as EBITDA multiples, ROIC analysis and DCF analysis. In 1999 she presented at the Credit Suisse First Boston Broadband conference, where she wanted to portray the message that real options is a superior valuation…

• 622 Words
• 3 Pages
Good Essays
• Better Essays

Charles Martin Case Study February 7, 2014 The Charles Martin in Uganda case study shows where companies can have differing opinions with their manager who is managing operations in a distant land. The values and normal tendencies of a company can sometimes be interpreted much differently by the manager in the international country. In this example, we will look at how Charles Martin dealt with cultural differences of Uganda and the United States based Hydro Generation (HG) Company. On the surface…

• 1149 Words
• 5 Pages
Better Essays
• Good Essays

MGT101 Case Study: Josh Martin Question 2 Leadership is defined as “the ability to influence people towards the attainment of organisational goals” (Samson & Daft, 2008). However, among all the ideas and writings about leadership, there are three different aspects that influence effective leadership; people, influences and goals. In other words, leadership is ‘self-motivated’ as it involves the use of power to influence people to achieve goals and outcomes (Samson & Daft, 2008). Effective leaders…

• 620 Words
• 3 Pages
Good Essays
• Satisfactory Essays

Laura Martin: Real Options Valuation in the Cable Industry Case Questions 1. What is the nature of Laura Martin’s job? Define the specific problem that she is addressing. A. Laura Martin is an equity research analyst. This was a unique opportunity to demonstrate her knowledge of the drivers of value in the cable industry. She was going to reveal the value of stocks of cable industry using real options, which is a more realistic way of evaluating the value of a project than EBITDA multiples…

• 311 Words
• 2 Pages
Satisfactory Essays