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Business Analysis Worksheet 2 1
Business Analysis Worksheet 2 1
Business Analysis Worksheet 2 1
1. Pass / Fail
Yes, they have free two day shipping with prime, they have every product needed, they are reliable, and
have loyal based customers.
2. Pass / Fail
Yes, they have shipping warehouses located worldwide, and ship products anywhere. They are the leading
competitor in their market. Producrs include amazon echo, amazon prime, and amazon fire.
3. Pass / Fail
Yes, the shipping industry will be very different and I dont think amazon has the technology to keep up
with other compnies.
4. What is the companys per share earning history and growth rate?
(Finding Information on morningstar.com)
EPS (Earnings Per Share) --- Type Ticker Symbol in Get QuoteFinancials
Year
EPS
2006
.45
2007
1.12
2008
1.49
2009
2.04
2010
2.53
2011
1.37
2012
-.9
2013
.59
2014
-.52
2015
1.25
4. Pass / Fail
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
56.13 58.48
33.34
22.75
19.01
8.63
-.49
3.06
-2.35
4.94
___$596,000,000_________________ =
Long term debt should not be more than five times current net earnings
(Finding Information on morningstar.com)
Long Term Debt ---Financials - Balance Sheet --- (Click Annual tab at top; Look at current
year)
Total Net Income ---Financials - Income Statement (Click Annual tab at top; Look at
current year)
7. Is the company free to raise prices with inflation?
7. Pass / Fail
If the price of the product has risen on an average of at least 4% a year over the last twenty years, then
you can bet the farm that its the kind of business that can raise prices along with inflation.
8. Are large capital expenditures required to update plant and equipment?
(Does the product/service require expensive changes or upgrades?)
8. Pass / Fail
Price Analysis
9. Is the companys stock price suffering from a market panic, a business recession, or an individual
calamity that is curable?
9. Pass / Fail
10. Use this formula to determine if the business is undervalued, fair valued, or overvalued.
P/E Ratio (Price / Earnings) / 5-Year Annual Avg. of Net Income =
___390.6_______
_610.7_________
___.6_______
0 1 = Company is undervalued
10. Undervalued/Fair value/Overvalued
1 2 = Company is fair valued
2 3 = Company if overvalued
(Finding Information on money.msn.com/)
P/E Ratio --- Valuation Price/Earnings (1st Column)
Net Income 5 Year Average ---Valuation Price/Earnings (4th Column)
Business Scorecard:
#1
#2
#3
#4
#5
Competitiv
e
Advantage
Understan
d
Business
Product/Servic
e
Obsolete in
20 years
Earnings
Per Share
(EPS)
Return
on
Equity
(ROE)
Pass
Pass
Pass
Pass
Pass
#6
#7
#8
#9
#10
Debt
Free to
Raise
Prices
Large
Cap. Exp
Needed
On Sale
Valuation
Pass
Pass
Pass
Pass
Undervalue
d
Fail
Fail
Fail
Fail
Fail
Fail
Fail
Fail
Fail
Overvalued