Introduction

The capstone paper focuses on conducting a fundamental analysis of three companies listed on
the Philippine Stock Exchange (PSE). This analysis involves evaluating the financial health,
performance, and prospects of each company to make informed investment decisions.
Step 1: Company Selection
Choose three companies listed on the PSE representing different sectors to ensure a diversified
analysis.
Consider companies with available financial data and information for a comprehensive analysis.
Step 2: Research and Data Collection
Gather financial statements (income statement, balance sheet, cash flow statement) of the
selected companies for the past 3-5 years.
Collect market data, industry reports, and news related to the companies to understand their
competitive landscape and market positioning.
Step 3: Financial Analysis
Calculate key financial ratios such as profitability ratios (ROE, ROA), liquidity ratios (current
ratio, quick ratio), leverage ratios (debt-to-equity ratio), and efficiency ratios (inventory turnover,
receivables turnover).
Analyze trends in financial ratios over the years to identify strengths and weaknesses of each
company.
Step 4: Industry and Market Analysis
Conduct a SWOT analysis for each company to assess internal strengths and weaknesses, as well
as external opportunities and threats.
Compare the companies' performance with industry benchmarks and market trends to evaluate
their competitive position.
Step 5: Valuation and Investment Recommendation
Use valuation methods such as discounted cash flow (DCF), price-to-earnings (P/E) ratio, and
price-to-book (P/B) ratio to estimate the intrinsic value of each company.
Provide an investment recommendation for each company based on the analysis, highlighting
potential risks and opportunities.
Step 6: Conclusion
Summarize the key findings of the analysis, including the investment thesis for each company
and the rationale behind the recommendations.