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refinitiv eikon代写-BAFI1045

时间：2021-02-11

BAFI1045 Investment Assignment

Group Company Valuation

Assignment (40%) and

Individual Presentation (10%)

RMIT University

Today’s Agenda

1. Assignment Briefing

2. How to estimate expected return using CAPM

(raw data)

RMIT University BAFI1045 Investment 2

RMIT University BAFI1045 Investment 3

BAFI 1045 Investment

Group Company Valuation Assignment and Individual Presentation

Assessment Task 1:

Company Valuation Report (Group Assessment) and an Individual

Presentation

Company to Research: Singapore Press Holdings (SPH)

Marks/Weighting: 50 marks and accounts for 50% of the total grade for this

course

(i) Company Valuation Report (Group Assessment) - 40 marks

(ii) Individual Presentation (Video) - 10 marks

Assignment Due Date:

Sunday of Week 10 (21st March 2021, 10 pm, SG)

RMIT University BAFI1045 Investment 4

BAFI 1045 Investment

Group Company Valuation Assignment and Individual Presentation

Word Limit/Length:

Company Valuation Report - Maximum 5,000 words (excluding Executive

Summary, appendix, references)

Individual Presentation (Video) - Maximum 10 minutes.

Submission Instructions:

The assignment will be submitted via Canvas, Turnitin

Rubric/Marking criteria: A marking rubric is provided on Canvas.

Group Disputes/Free Rider Problem:

This must be brought to lecturer’s attention 2 Weeks prior to dateline.

RMIT University BAFI1045 Investment 5

BAFI 1045 Investment

Group Company Valuation Assignment and Individual Presentation

You are required to analyse a listed company and prepare an

investment recommendation report.

The report provides an assessment of the company’s current

position and future prospects, incorporating the use of various

valuation techniques to arrive at estimates of the intrinsic value of

the company’s shares.

Your report should make a case for the company’s shares to be

rated in one of the following ways (Recommendation):

Sell Hold Buy

The shares should be

sold, as a materially

negative return is

expected in the next 6

to 12 months.

The shares will have

neither a materially

positive return nor a

materially negative

return in the next 6 to 12

months.

The shares should be

bought, as a materially

positive return is

expected in the next 6

to 12 months.

RMIT University BAFI1045 Investment 6

Part I

The final submission should fulfil the following minimum

requirements:

1. Introduction & Background

Company

Provide an overview of the company's history, operations and

any structural changes it has undergone since it began. This is

to understand how the company got to where it is today and

what may occur in the future.

Industry

Analyse the structure of the industry in which the firm operates

and whether it is domestic-focussed or has a global nature.

Identify the industry's major companies and where they operate.

RMIT University BAFI1045 Investment 7

Part I

2. Historical Financial Performance (Topic 6)

Evaluate the relative historical financial performance of the

company among its 2 major competitors/peers

• Identify the firm’s 2 major competitors and discuss why they have

been selected

• Identify, and explain the relevance of, 5 financial ratios of your

choice (not to include ROE, Net Profit Margin, Total Asset Turnover

or Financial Leverage) for the company and its peers

• Explain the performance of the company compared to its 2 major

competitors/peers using this analysis

➔ Analyse and explain the reasons for changes in these ratios over

the past five years

➔ Do not simply describe the changes in the ratios

RMIT University BAFI1045 Investment 8

Part I

3. Historical Dupont ROE (Topic 6)

Estimate the ROE of the company and its 2 major competitors for

most recent 5 years using the DuPont ROE approach.

• DuPont Analysis should be done using the 3-step procedure:

3 steps: Net Profit Margin, Total Asset Turnover and Financial Leverage

• Analyse the company’s and your selected peer companies’ ROEs over

the period

• Show your own calculations for each component over the previous 5

years for the company and its 2 selected competitors

• compare the DuPont ROE of the company with its 2 peer group

companies

➔analyse and comment on the reasons for the change in ROE for the firm

and its competitors with reference to the change in the 3 components

over 5 years

➔relevant charts/graphs may be used to illustrate these figures

RMIT University BAFI1045 Investment 9

Part I

4. Company & Industry Analysis and Potential Impact on Future

Earnings (Topic 5)

Analyse the company’s/industry’s current issues and explain

the effect of these issues on the company’s future earnings

a) At the Microeconomic Level:

The company - and industry-specific factors (operation, financials,

objectives, competition, etc.)

➔ Use SWOT Analysis

b) At the Macroeconomic Level:

General factors that apply for the industry (GDP, employment,

growth of the industry, regulation, global factors, supply, demand,

world commodity prices, etc.)

➔ Use Porter’s 5 Forces Analysis

RMIT University BAFI1045 Investment 10

Part II

1. Estimation of Expected Return, E(ri), using CAPM (Topic 4)

➔ The estimated CAPM required return should be used as the

discount rate in your valuation models

E(ri) = Rf + βi [ E(Rm) – Rf ]

Expected

return on a

security

=

Risk-

free

Rate

+

Beta of

the

security

x Market risk

premium

RMIT University BAFI1045 Investment 11

Part II

(i). An Estimate of the company’s Beta, βi.

Use the daily closing price data of the company and the market index

to calculate daily holding period yields for the most recent 5 years.

Using this data, you can estimate raw beta by using regression

analysis in Excel. Attach details of your work as an Appendix.

➔ Adjust the Raw Beta using the formula:

Adjusted Beta = [(0.67) x Raw Beta] + 0.33

RMIT University BAFI1045 Investment 12

Part II

(ii). The Risk-Free Rate of Return

Use the 10-year Singapore Government bond yield as a proxy for

the RFR.

(iii). The Market Return

Please use an estimate of the market return, E(Rm)

RMIT University BAFI1045 Investment 13

Part II

2. Intrinsic Value Estimation: Using Discounted Cash Flow

Models

(i) Dividend Discount Model (Topic 8 Part I)

Estimate the intrinsic value of the company’s shares using the

dividend discount model (DDM)

• You must use a 3 Stage DDM. Follow the methodology discussed

in Equity Valuation slides

• Justify the number of years used for each of your growth periods

• Determine the growth rate for Period 1 using the Retention Ratio

and ROE formula (g = RR x ROE)

• Estimate the growth rate for Period 2 using your discussion in the

company's/industry current issues section (Part I, no. 4)

RMIT University BAFI1045 Investment 14

Part II

• Estimate the terminal (Period 3) growth rate using a proxy that

represents the long-term growth rate and calculate the terminal

value

• Calculate the present value of each future dividend and the

terminal value, then add them to calculate the intrinsic value of

the company

➔ Provide justification and reasoning if you use a different growth

rate than the one calculated for Period 1

➔ Provide justification and reasoning for your growth rate

assumptions for growth in Period 2 and Period 3

RMIT University BAFI1045 Investment 15

Part II

(ii). Free Cash Flow to Equity (FCFE) Model (Topic 8 Part II)

Estimate the intrinsic value of the company’s shares using

the Free Cash Flow to Equity (FCFE) model

• You must use a 3 stage FCFE model to calculate the intrinsic value

of the stock

• Source the components for FCFE from the company’s financial

statements using Eikon

• Calculate the FCFE per share over the past 5 years. The average

growth in FCFE per share will be the growth rate for Period 1

Formula FCFE = Net Income + (Depreciation Expense – Capital

Expenditures) - Δ in Working Capital - Principal Debt Repayments +

New Debt Issues OR FCFE = Cash from Operating Activities – Capital

Expenditures + Net Debt Issued (Repaid)

RMIT University BAFI1045 Investment 16

Part II

• Estimate the growth of FCFE for Period 2 using your macro and

micro analysis (Part I, no. 4)

• Estimate the terminal (Period 3) growth rate using a proxy that

represents the long-term growth rate and calculate the terminal

value

• Calculate the present value of each future year’s FCFE to

calculate present value, then add them to calculate the intrinsic

value of the company

➔ Provide justification and reasoning if you use a different growth

rate than the one calculated for Period 1

➔ Provide justification and reasoning for your growth rate

assumptions for growth in Period 2 and Period 3

RMIT University BAFI1045 Investment 17

Part II

3. Intrinsic Value Estimation: Using Relative Valuation

Techniques (Topic 8 Part II)

(i). INTRINSIC or JUSTIFIED Price-to-Book Ratio (P/B)

(ii). INTRINSIC or JUSTIFIED Price-to-Earnings Ratio (P/E)

• Calculate and compare the Intrinsic or Justified Price-to-Book

and Price-to-Earnings ratio for the company

• Determine the relative valuation of the firm using these

multiples (Do not attempt to calculate the share price)

➔ Analyse and comment on the relative valuation of the firm in

comparison to what is being traded in the market.

RMIT University BAFI1045 Investment 18

Part II

4. Technical Analysis

(i) Share Price Performance

Using relevant charts, evaluate the company’s share price

performance over the last 5 years

• Compare the relative performance of the company to the broad

market index

• Compare the relative performance of the company to its 2 peers

➔ Comment on these charts, referencing reasons for any

significant changes you have identified

RMIT University BAFI1045 Investment 19

Part II

(ii). Moving Average and Volume Analysis

Use 50-day vs 200-day moving average lines and volume

analysis to identify Buy/Sell/Hold signals

➔ Show, and comment on, these analysis with reference to

charts sourced from Eikon

➔ Use volume analysis to confirm your price signals

RMIT University BAFI1045 Investment 20

Part III

Conclusion and Recommendation

Evaluation of Findings and Recommendations

• Why do the intrinsic values you have calculated differ from the

current/recent share price?

• How does this difference inform your investment recommendation?

• What is your investment decision based on your evaluation?

➔ Is your recommendation to Buy, Sell or Hold shares in this

company?

• Is it different from the signal obtained from the technical analysis?

Why?

• Does your qualitative analysis agree with your quantitative

analysis? If not, why not?

RMIT University BAFI1045 Investment 21

Important Points to be Covered Regarding Valuation Models:

• Explain any assumptions you have made in implementing your

models.

• Where appropriate, explain how you arrived at the variables you

are using. For example, it is not enough to say you are assuming a

2% growth rate. You will be expected to provide justification for

your 2% growth rate.

• It's not enough to simply describe the financial ratios. You must find

reasons why they are changing, especially if there are significant

changes year-to-year. This will require in-depth research.

• You must use Refinitiv Eikon Online and IBISWorld as major data

sources. These can be supplemented with data from the

companies' annual reports and other sources you have found.

BAFI1045 Investment 22

Presentation of Report

The report is to be presented in the form of a stock analyst’s investment

report. It should have an Executive Summary, outlining the main findings,

at the beginning. The remainder can be structured in line with the above

points. Attach details of your working and calculations, and any other

relevant information, as an Appendix. DO NOT send a separate Excel file.

Don’t include all the data for the beta calculation, just the regression

statistics from Excel.

• Illustrate your arguments with relevant charts and diagrams.

• Relate all the information in your analysis to your investment

recommendation.

• Build a case for your recommendation by using your findings from each

of the points above.

• Your report should look professional.

• DO NOT attach information you have used in compiling the report

(annual reports, newspaper articles, etc.) to the report.

RMIT University

BAFI1045 Investment 23

Executive Summary

• An executive summary is often written for leaders in a business

or organisation, such as CEOs, department heads, or

supervisors, so they can get critical information quickly to decide

a course of action.

• An executive summary should summarise the key points of the

report.

• It should restate the purpose of the report, highlight the

major points of the report, and describe any results,

conclusions, or recommendations from the report.

• It should include enough information so the reader can

understand what is discussed in the full report, without having to

read it. Do not state your methodology in the Executive

Summary.

RMIT University

BAFI1045 Investment 24

References and Citations

Use proper citations and references and include a list of references

you use in your report. Failure to do so will result in a lower grade.

RMIT provides a web site which explains the use of the Harvard

reference system. Please consult it here:

https://www.lib.rmit.edu.au/easy-cite/

RMIT University

BAFI1045 Investment 25

Suggested Format for Your Assignment

1. RMIT Assignment Cover Page, signed by all team members

2. Professional first page with major details such as recommendation,

price targets, price chart (similar to a broker’s report)

3. Executive Summary

4. Table of Contents

5. Introduction

6. Main body of your report

7. Conclusion and restatement of recommendation

8. References

9. Appendices

RMIT University

BAFI1045 Investment 26

Individual Presentation (10%)

• You will need to pitch this stock to your clients in your

Presentation. The aim of the presentation is to explain and

justify the buy/sell/hold recommendation to potential

investors.

• Each of you will need to present a comprehensive analysis.

That means you do not only present the part of the research that

you are mainly responsible for but the full analysis. You will

need to present company analysis, macroeconomic and

industry analysis, equity valuation and other important analysis

contained in your group report.

• Your slides should look professional and well structured. There

is no minimum/maximum number of slides. As the analyst, you

will need to decide the contents and number of slides to present

it professionally to your clients/investors.

RMIT University

BAFI1045 Investment 27

Some Useful Resources for This Assignment

• Reilly, Frank K., Keith C. Brown and Sanford Leeds, Investment

Analysis and Portfolio Management (11th Edition), Thomson

South-Western, 2019.

• You should also conduct your own analysis using the

companies' web sites, annual reports,

• Refinitiv Eikon, IBISWorld and any other sources you consider

to be relevant for your report.

• The more resources you use for your research, the better your

analysis will be.

RMIT University

BAFI1045 Investment 28

Assignment Submission Procedure

All assignments must be submitted online through the course Canvas

Turnitin for a plagiarism check. They must be accompanied by an

assignment cover sheet.

Penalties for Late Submission

All assignments will be marked as if submitted on time. Late submissions

of assignments without special consideration or extension will be

automatically penalised at a rate of 10% of the total marks available per

day (or part of a day) late.

For example, if an assignment is worth 20 marks and it is submitted 1 day

late, a penalty of 10% or 2 marks will apply. This will be deducted from the

assessed mark.

Assignments will not be accepted if more than five days late, unless

special consideration or an extension of time has been approved.

RMIT University

BAFI1045 Investment 29

An Important Note on Plagiarism

What is Plagiarism?

Plagiarism is the presentation of the work, ideas or creation of another person

without appropriate referencing, as though it is one’s own. Plagiarism can occur

in oral and written presentations and is never acceptable. The use of another

person’s work or ideas must be acknowledged. Failure to do so may result in

charges of academic misconduct, which carry a range of penalties including

cancellation of results and exclusion from the course.

Students are advised to read and understand the University’s policy on

plagiarism.

Do Not Plagiarise!

RMIT University

Equity Valuation

(Part I)

Next Week:

Casio FC-100V TI BA II Plus

Assignment

Requirement

Part II(1)

Now:

学霸联盟

Group Company Valuation

Assignment (40%) and

Individual Presentation (10%)

RMIT University

Today’s Agenda

1. Assignment Briefing

2. How to estimate expected return using CAPM

(raw data)

RMIT University BAFI1045 Investment 2

RMIT University BAFI1045 Investment 3

BAFI 1045 Investment

Group Company Valuation Assignment and Individual Presentation

Assessment Task 1:

Company Valuation Report (Group Assessment) and an Individual

Presentation

Company to Research: Singapore Press Holdings (SPH)

Marks/Weighting: 50 marks and accounts for 50% of the total grade for this

course

(i) Company Valuation Report (Group Assessment) - 40 marks

(ii) Individual Presentation (Video) - 10 marks

Assignment Due Date:

Sunday of Week 10 (21st March 2021, 10 pm, SG)

RMIT University BAFI1045 Investment 4

BAFI 1045 Investment

Group Company Valuation Assignment and Individual Presentation

Word Limit/Length:

Company Valuation Report - Maximum 5,000 words (excluding Executive

Summary, appendix, references)

Individual Presentation (Video) - Maximum 10 minutes.

Submission Instructions:

The assignment will be submitted via Canvas, Turnitin

Rubric/Marking criteria: A marking rubric is provided on Canvas.

Group Disputes/Free Rider Problem:

This must be brought to lecturer’s attention 2 Weeks prior to dateline.

RMIT University BAFI1045 Investment 5

BAFI 1045 Investment

Group Company Valuation Assignment and Individual Presentation

You are required to analyse a listed company and prepare an

investment recommendation report.

The report provides an assessment of the company’s current

position and future prospects, incorporating the use of various

valuation techniques to arrive at estimates of the intrinsic value of

the company’s shares.

Your report should make a case for the company’s shares to be

rated in one of the following ways (Recommendation):

Sell Hold Buy

The shares should be

sold, as a materially

negative return is

expected in the next 6

to 12 months.

The shares will have

neither a materially

positive return nor a

materially negative

return in the next 6 to 12

months.

The shares should be

bought, as a materially

positive return is

expected in the next 6

to 12 months.

RMIT University BAFI1045 Investment 6

Part I

The final submission should fulfil the following minimum

requirements:

1. Introduction & Background

Company

Provide an overview of the company's history, operations and

any structural changes it has undergone since it began. This is

to understand how the company got to where it is today and

what may occur in the future.

Industry

Analyse the structure of the industry in which the firm operates

and whether it is domestic-focussed or has a global nature.

Identify the industry's major companies and where they operate.

RMIT University BAFI1045 Investment 7

Part I

2. Historical Financial Performance (Topic 6)

Evaluate the relative historical financial performance of the

company among its 2 major competitors/peers

• Identify the firm’s 2 major competitors and discuss why they have

been selected

• Identify, and explain the relevance of, 5 financial ratios of your

choice (not to include ROE, Net Profit Margin, Total Asset Turnover

or Financial Leverage) for the company and its peers

• Explain the performance of the company compared to its 2 major

competitors/peers using this analysis

➔ Analyse and explain the reasons for changes in these ratios over

the past five years

➔ Do not simply describe the changes in the ratios

RMIT University BAFI1045 Investment 8

Part I

3. Historical Dupont ROE (Topic 6)

Estimate the ROE of the company and its 2 major competitors for

most recent 5 years using the DuPont ROE approach.

• DuPont Analysis should be done using the 3-step procedure:

3 steps: Net Profit Margin, Total Asset Turnover and Financial Leverage

• Analyse the company’s and your selected peer companies’ ROEs over

the period

• Show your own calculations for each component over the previous 5

years for the company and its 2 selected competitors

• compare the DuPont ROE of the company with its 2 peer group

companies

➔analyse and comment on the reasons for the change in ROE for the firm

and its competitors with reference to the change in the 3 components

over 5 years

➔relevant charts/graphs may be used to illustrate these figures

RMIT University BAFI1045 Investment 9

Part I

4. Company & Industry Analysis and Potential Impact on Future

Earnings (Topic 5)

Analyse the company’s/industry’s current issues and explain

the effect of these issues on the company’s future earnings

a) At the Microeconomic Level:

The company - and industry-specific factors (operation, financials,

objectives, competition, etc.)

➔ Use SWOT Analysis

b) At the Macroeconomic Level:

General factors that apply for the industry (GDP, employment,

growth of the industry, regulation, global factors, supply, demand,

world commodity prices, etc.)

➔ Use Porter’s 5 Forces Analysis

RMIT University BAFI1045 Investment 10

Part II

1. Estimation of Expected Return, E(ri), using CAPM (Topic 4)

➔ The estimated CAPM required return should be used as the

discount rate in your valuation models

E(ri) = Rf + βi [ E(Rm) – Rf ]

Expected

return on a

security

=

Risk-

free

Rate

+

Beta of

the

security

x Market risk

premium

RMIT University BAFI1045 Investment 11

Part II

(i). An Estimate of the company’s Beta, βi.

Use the daily closing price data of the company and the market index

to calculate daily holding period yields for the most recent 5 years.

Using this data, you can estimate raw beta by using regression

analysis in Excel. Attach details of your work as an Appendix.

➔ Adjust the Raw Beta using the formula:

Adjusted Beta = [(0.67) x Raw Beta] + 0.33

RMIT University BAFI1045 Investment 12

Part II

(ii). The Risk-Free Rate of Return

Use the 10-year Singapore Government bond yield as a proxy for

the RFR.

(iii). The Market Return

Please use an estimate of the market return, E(Rm)

RMIT University BAFI1045 Investment 13

Part II

2. Intrinsic Value Estimation: Using Discounted Cash Flow

Models

(i) Dividend Discount Model (Topic 8 Part I)

Estimate the intrinsic value of the company’s shares using the

dividend discount model (DDM)

• You must use a 3 Stage DDM. Follow the methodology discussed

in Equity Valuation slides

• Justify the number of years used for each of your growth periods

• Determine the growth rate for Period 1 using the Retention Ratio

and ROE formula (g = RR x ROE)

• Estimate the growth rate for Period 2 using your discussion in the

company's/industry current issues section (Part I, no. 4)

RMIT University BAFI1045 Investment 14

Part II

• Estimate the terminal (Period 3) growth rate using a proxy that

represents the long-term growth rate and calculate the terminal

value

• Calculate the present value of each future dividend and the

terminal value, then add them to calculate the intrinsic value of

the company

➔ Provide justification and reasoning if you use a different growth

rate than the one calculated for Period 1

➔ Provide justification and reasoning for your growth rate

assumptions for growth in Period 2 and Period 3

RMIT University BAFI1045 Investment 15

Part II

(ii). Free Cash Flow to Equity (FCFE) Model (Topic 8 Part II)

Estimate the intrinsic value of the company’s shares using

the Free Cash Flow to Equity (FCFE) model

• You must use a 3 stage FCFE model to calculate the intrinsic value

of the stock

• Source the components for FCFE from the company’s financial

statements using Eikon

• Calculate the FCFE per share over the past 5 years. The average

growth in FCFE per share will be the growth rate for Period 1

Formula FCFE = Net Income + (Depreciation Expense – Capital

Expenditures) - Δ in Working Capital - Principal Debt Repayments +

New Debt Issues OR FCFE = Cash from Operating Activities – Capital

Expenditures + Net Debt Issued (Repaid)

RMIT University BAFI1045 Investment 16

Part II

• Estimate the growth of FCFE for Period 2 using your macro and

micro analysis (Part I, no. 4)

• Estimate the terminal (Period 3) growth rate using a proxy that

represents the long-term growth rate and calculate the terminal

value

• Calculate the present value of each future year’s FCFE to

calculate present value, then add them to calculate the intrinsic

value of the company

➔ Provide justification and reasoning if you use a different growth

rate than the one calculated for Period 1

➔ Provide justification and reasoning for your growth rate

assumptions for growth in Period 2 and Period 3

RMIT University BAFI1045 Investment 17

Part II

3. Intrinsic Value Estimation: Using Relative Valuation

Techniques (Topic 8 Part II)

(i). INTRINSIC or JUSTIFIED Price-to-Book Ratio (P/B)

(ii). INTRINSIC or JUSTIFIED Price-to-Earnings Ratio (P/E)

• Calculate and compare the Intrinsic or Justified Price-to-Book

and Price-to-Earnings ratio for the company

• Determine the relative valuation of the firm using these

multiples (Do not attempt to calculate the share price)

➔ Analyse and comment on the relative valuation of the firm in

comparison to what is being traded in the market.

RMIT University BAFI1045 Investment 18

Part II

4. Technical Analysis

(i) Share Price Performance

Using relevant charts, evaluate the company’s share price

performance over the last 5 years

• Compare the relative performance of the company to the broad

market index

• Compare the relative performance of the company to its 2 peers

➔ Comment on these charts, referencing reasons for any

significant changes you have identified

RMIT University BAFI1045 Investment 19

Part II

(ii). Moving Average and Volume Analysis

Use 50-day vs 200-day moving average lines and volume

analysis to identify Buy/Sell/Hold signals

➔ Show, and comment on, these analysis with reference to

charts sourced from Eikon

➔ Use volume analysis to confirm your price signals

RMIT University BAFI1045 Investment 20

Part III

Conclusion and Recommendation

Evaluation of Findings and Recommendations

• Why do the intrinsic values you have calculated differ from the

current/recent share price?

• How does this difference inform your investment recommendation?

• What is your investment decision based on your evaluation?

➔ Is your recommendation to Buy, Sell or Hold shares in this

company?

• Is it different from the signal obtained from the technical analysis?

Why?

• Does your qualitative analysis agree with your quantitative

analysis? If not, why not?

RMIT University BAFI1045 Investment 21

Important Points to be Covered Regarding Valuation Models:

• Explain any assumptions you have made in implementing your

models.

• Where appropriate, explain how you arrived at the variables you

are using. For example, it is not enough to say you are assuming a

2% growth rate. You will be expected to provide justification for

your 2% growth rate.

• It's not enough to simply describe the financial ratios. You must find

reasons why they are changing, especially if there are significant

changes year-to-year. This will require in-depth research.

• You must use Refinitiv Eikon Online and IBISWorld as major data

sources. These can be supplemented with data from the

companies' annual reports and other sources you have found.

BAFI1045 Investment 22

Presentation of Report

The report is to be presented in the form of a stock analyst’s investment

report. It should have an Executive Summary, outlining the main findings,

at the beginning. The remainder can be structured in line with the above

points. Attach details of your working and calculations, and any other

relevant information, as an Appendix. DO NOT send a separate Excel file.

Don’t include all the data for the beta calculation, just the regression

statistics from Excel.

• Illustrate your arguments with relevant charts and diagrams.

• Relate all the information in your analysis to your investment

recommendation.

• Build a case for your recommendation by using your findings from each

of the points above.

• Your report should look professional.

• DO NOT attach information you have used in compiling the report

(annual reports, newspaper articles, etc.) to the report.

RMIT University

BAFI1045 Investment 23

Executive Summary

• An executive summary is often written for leaders in a business

or organisation, such as CEOs, department heads, or

supervisors, so they can get critical information quickly to decide

a course of action.

• An executive summary should summarise the key points of the

report.

• It should restate the purpose of the report, highlight the

major points of the report, and describe any results,

conclusions, or recommendations from the report.

• It should include enough information so the reader can

understand what is discussed in the full report, without having to

read it. Do not state your methodology in the Executive

Summary.

RMIT University

BAFI1045 Investment 24

References and Citations

Use proper citations and references and include a list of references

you use in your report. Failure to do so will result in a lower grade.

RMIT provides a web site which explains the use of the Harvard

reference system. Please consult it here:

https://www.lib.rmit.edu.au/easy-cite/

RMIT University

BAFI1045 Investment 25

Suggested Format for Your Assignment

1. RMIT Assignment Cover Page, signed by all team members

2. Professional first page with major details such as recommendation,

price targets, price chart (similar to a broker’s report)

3. Executive Summary

4. Table of Contents

5. Introduction

6. Main body of your report

7. Conclusion and restatement of recommendation

8. References

9. Appendices

RMIT University

BAFI1045 Investment 26

Individual Presentation (10%)

• You will need to pitch this stock to your clients in your

Presentation. The aim of the presentation is to explain and

justify the buy/sell/hold recommendation to potential

investors.

• Each of you will need to present a comprehensive analysis.

That means you do not only present the part of the research that

you are mainly responsible for but the full analysis. You will

need to present company analysis, macroeconomic and

industry analysis, equity valuation and other important analysis

contained in your group report.

• Your slides should look professional and well structured. There

is no minimum/maximum number of slides. As the analyst, you

will need to decide the contents and number of slides to present

it professionally to your clients/investors.

RMIT University

BAFI1045 Investment 27

Some Useful Resources for This Assignment

• Reilly, Frank K., Keith C. Brown and Sanford Leeds, Investment

Analysis and Portfolio Management (11th Edition), Thomson

South-Western, 2019.

• You should also conduct your own analysis using the

companies' web sites, annual reports,

• Refinitiv Eikon, IBISWorld and any other sources you consider

to be relevant for your report.

• The more resources you use for your research, the better your

analysis will be.

RMIT University

BAFI1045 Investment 28

Assignment Submission Procedure

All assignments must be submitted online through the course Canvas

Turnitin for a plagiarism check. They must be accompanied by an

assignment cover sheet.

Penalties for Late Submission

All assignments will be marked as if submitted on time. Late submissions

of assignments without special consideration or extension will be

automatically penalised at a rate of 10% of the total marks available per

day (or part of a day) late.

For example, if an assignment is worth 20 marks and it is submitted 1 day

late, a penalty of 10% or 2 marks will apply. This will be deducted from the

assessed mark.

Assignments will not be accepted if more than five days late, unless

special consideration or an extension of time has been approved.

RMIT University

BAFI1045 Investment 29

An Important Note on Plagiarism

What is Plagiarism?

Plagiarism is the presentation of the work, ideas or creation of another person

without appropriate referencing, as though it is one’s own. Plagiarism can occur

in oral and written presentations and is never acceptable. The use of another

person’s work or ideas must be acknowledged. Failure to do so may result in

charges of academic misconduct, which carry a range of penalties including

cancellation of results and exclusion from the course.

Students are advised to read and understand the University’s policy on

plagiarism.

Do Not Plagiarise!

RMIT University

Equity Valuation

(Part I)

Next Week:

Casio FC-100V TI BA II Plus

Assignment

Requirement

Part II(1)

Now:

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