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Valuation in Practice Investment and Equity Decisions - BLK 1
Valuation in Practice Investment and Equity Decisions - BLK 1
VALUATION IN PRACTICE:
INVESTMENT AND EQUITY
DECISIONS
Arowwai Industries
CAPITAL INVESTMENT
DECISIONS
INVESTMENT
DECISION
FACTORS AFFECTING
INVESTMENT DECISION
1. Investment objective
2. Return on investment
3. Return frequency
4. Involved risks
5. Maturity period
6. Tax benefit
7. Volatility
8. Liquidity
9. Inflation rate
Arowwai Industries
INVESTMENT BANKS
1. UNDERWRITING
THREE TYPES OF
UNDERWRITING:
Firm Commitment
Best Efforts
All-or-None
\
Arowwai Industries
4. EQUITY RESEARCH
5. ASSET MANAGEMENT
01 02 03
CAREERS IN
INVESTMENT BANKING
Analyst
Associate
Vice President
Director
Managing Director
Head, Vice Chair, or another special title
Arowwai Industries
EQUITY
RESEARCH
analyzing the company’s financials, performing
ratio analysis,
forecasting the financials in excel (financial
modeling), and
exploring scenarios to make a BUY/SELL stock
investment recommendation.
Arowwai Industries
Arowwai Industries
EQUITY RESEARCH
REPORT
-is a communication from a securities
firm to its clients with a very specific
purpose.
EQUITY RESEARCH
PROFESSIONAL
APPROACH
1.Economic Analysis
EQUITY RESEARCH
PROFESSIONAL
APPROACH
-the method of determining the intrinsic
2. Fundamental Analysis value of a company's stock to benefit from
its trading.
EXAMPLE OF COLGATE RATIO ANALYSIS
3. Preparing a Professional Financial
EQUITY RESEARCH
PROFESSIONAL
=
Model
APPROACH
FINANCIAL
MODEL
forecasts a
business’s financial
performance into
the future
Arowwai Industries
EQUITY RESEARCH
PROFESSIONAL
APPROACH
4. Valuations – DCF
EQUITY RESEARCH
PROFESSIONAL
APPROACH
6. Research Report
TYPES OF EQUITY
RESEARCH REPORT
1. INITIATION
REPORT
detailed report contains the
stock details and overall
competition, industry
dynamics, etc.
Arowwai Industries
TYPES OF EQUITY
RESEARCH REPORT
2. SECTOR
REPORT
provides deep insights into
Industry dynamics,
competitors, government
regulations, and key forecasts.
Arowwai Industries
TYPES OF EQUITY
RESEARCH REPORT
3. STRATEGIC
REPORT
contain information on general
macroeconomics, currency
movements, commodities, etc.
Arowwai Industries
TYPES OF EQUITY
RESEARCH REPORT
4. QUARTERLY
REPORT
generally smaller and contain
only vital highlights of
quarterly/annual results.
Arowwai Industries
TYPES OF EQUITY
RESEARCH REPORT
5. FLASH REPORT
could be anything important
that is worth communicating to
clients.
KEY DIFFERENCES
FUNCTIONS OF
INVESTMENT BANKING
UNDERWRITING
MERGER AND ACQUISITION
EQUITY RESEARCH
TRADING AND SALES
ASSET MANAGEMENT
Arowwai Industries
REPORTERS:
GROUP 4 MARY ANGEL D. IBASAN
REJEAN RUSS G. MENDOZA
HAZEL S . RAMOS
PAULA JANE S. SANCHEZ
MA. CRISTINE SEGUNDO