Ticker: ●
Recommendation: ●
Price: ● Price Target: ●
Earnings/Share
Mar. Jun. Sept. Dec. Year P/E Ratio
2005A $0.00 $0.00 $0.00 $0.00 $0.00 0.0x
2006A 0.00 0.00 0.00 0.00 0.00 0.0
2007A 0.00 0.00 0.00 0.00 0.00 0.0
2008E 0.00 0.00 0.00 0.00 0.00 0.0
Highlights (Heading: Times New Roman 14 Bold)
• Bullet Heading: Times New Roman 9 Bold: Paragraph Text Times New Roman 9 Dummy text This section should include key Merits and Risks – reasons to buy or sell or hold this stock. I.e. this is the main thrust of the story. You can think of this page as the ‘Executive Summary’, and then the remainder of the report backs this up.
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Business Description (Heading: Times New Roman 14 Bold)
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Industry Overview and Competitive Positioning
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Investment Summary (Heading: Times New Roman 14 Bold)
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Graph / table explanation / summary: Times New Roman 8 normal (gray 80%)
Source: Times New Roman 7 Italics
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Valuation (Heading: Times New Roman 14 Bold)
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Risks to Your Price Target
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Financial Analysis
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Earnings
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Cash Flow
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Balance Sheet & Financing
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Other Headings Relevant to Company
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Investment Risks
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SWOT
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PEST
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MAXIMUM OF 10 PAGES FOR MAIN PART OF REPORT
APPENDIX
Details of Financial Evaluation: - Must use at least 2 methods
DDM Model
Calculation of expected earnings (discussed in earlier section)
Calculation of Beta
Calculation of cost of equity
PE Model
Estimation of earnings and PE
Comp Co’s
Industry comparisons (discussed in earlier section), and resulting use of PE’s in each company
DCF
Calculation of CF’s (discussed in earlier section)
Calculation of WACC
Estimation of terminal growth rate
Final calculation of CF discounting
Final Recommendation
Comparison of forecasts from each method, with reasoning behind final choice.
Could include other analysts’ forecasts for ‘reality check’
Figure 1: Income Statement
in millions
Source: Company Documents, Student Estimates
Figure 2: Balance Sheet
in millions
Source: Company Documents, Student Estimates
Figure 3: Statement of Cash Flows
in millions
Source: Company Documents, Student Estimates
Figure •: Other Statements or Exhibits
in millions
Source: Company Documents, Student Estimates
Figure •: Historical Financials
(if not already shown in previous section)
Source:
Figure •: Industry Comparable Financials
(if not already shown in previous section)
Source:
Disclosures: (IF YOU OWN THIS STOCK, YOU MUST DISCLOSE THAT FACT)
Ownership and material conflicts of interest:
The author(s), or a member of their household, of this report [holds/does not hold] a financial interest in the securities of this company.
The author(s), or a member of their household, of this report [knows/does not know] of the existence of any conflicts of interest that might bias the content or publication of this report. [The conflict of interest is…]
Receipt of compensation:
Compensation of the author(s) of this report is not based on investment banking revenue.
Position as a officer or director:
The author(s), or a member of their household, does [not] serves as an officer, director or advisory board member of the subject company.
Market making:
The author(s) does [not] act as a market maker in the subject company’s securities.
Ratings guide:
Banks rate companies as either a BUY, HOLD or SELL.
Disclaimer:
The information set forth herein has been obtained or derived from sources generally available to the public and believed by the author(s) to be reliable, but the author(s) does not make any representation or warranty, express or implied, as to its accuracy or completeness. The information is not intended to be used as the basis of any investment decisions by any person or entity. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. This report should not be considered to be a recommendation by any individual affiliated with [Society Name], CFA Institute or the CFA Institute Research Challenge with regard to this company’s stock.