Industry Selection and Valuation
Autor: Danielle Hanna • February 26, 2018 • Business Plan • 4,678 Words (19 Pages) • 523 Views
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INDUSTRY ANALYSIS & VALUATION
Afaf ElAbed – Elie Hatem – Jennifer AlSayah – Joseph Assaf
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Table of Contents
Executive Summary 2
Investors Risk Profiles 2
Industries Risk Assessment 3
Industry Selection 4
Economy and Market Overview 4
Macro Analysis 6
Technology Industry 6
Business Life Cycle 6
Economy – Industry Relationship 7
Structural Changes 8
Industry Life Cycle 9
Competitive Environment 10
Industry Matrix 11
Healthcare Industry 11
Business Cycle 11
Economy – Industry Relationship 12
Structural Changes 12
Industry Life Cycle 13
Competitive Environment 13
Industry Matrix 14
Micro Analysis 14
The Dividend Discount Model (DDM) 14
The Free Cash Flow to Equity Model (FCFE) 14
Earnings Multiplier Technique (EV/EBITDA) 15
The price-to-book-value ratio (P/BV) 15
Enterprise Value to Sales (P/CF) 15
Appendices 16
Appendix A: Investors Risk Profiles 16
Appendix B: Industries Life Cycle 16
Appendix E: Industries Current Performance 19
Appendix G: Sources 19
Executive Summary
The purpose of this project is to study the current economy and its current status, select an industry that matches the cumulative risk profile of the Team, value that industry based on several valuation methodologies, then assess a weighted average value for the industries under study in order to reach a conclusion whether to go long if our models displayed that the industry is undervalued or short if our models displayed that the industry overvalued.
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