Since many of you could not decide which company you would like to do on valuation i have allotted for

you (check the attached excel file for your perusal) Aim / Objective - To derive approximate fair value of assigned company or whether it makes sense to buy or sell stock at given current market prices (10th Sept'2012) using all the valuation technique arrive at Target Prices of the company 1) P/B - gordon growth model 2) P/E - a) fair P/E as per you, b) fair P/E as per Relative Valuation c) Fair P/E with help of reverse engineered target P/B 3) EV/EBITDA- a) fair EV/EBITDA as per you, b) fair EV/EBITDA as per Relative Valuation 4) EV/ Sales- a) fair EV/sales as per you, b) fair ev/sales as per Relative Valuation 5) DCF - FCFE or FCFF 6) dividend discount model needless to say all of the above technique requires forward forecasted financial statments. like in dividend discount model , we take dividend of future year. meaning we are in Aug-2012, so we need dividend for the year FY2013 or year ending in Mar-2013/14 (or Dec-2012/13 if you company has december year ending). meaning you have to forecast P&L, B/S & CF of forward 2 yrs same goes for P/B, you have to arrive at target P/B multiple and then multiple it by Bookvalue of 2013 & 2014 to arrive at target price of the stock. and process is repeated for all the other technique. in case of DCF you can explicitly forecast financial statements for 2 or 5 or 10yrs and after which you can take calculate terminal value on 2 or 5 or 10th yr then you have to recommend which is correct way to value the company and WHY accordingly recommend Buy or Sell on company based on current market price (10-sept-2012). also outline key risk to your calls - meaning you have assumed certain things, so if those certain things changes, your recommedation might go wrong, so what are key risk that can go possible go wrong. sources of data collection & information company itself - visit company website - visit investor tab - annual report & other company provided data should be there. {try meeting company management for the project, might be helpful for your final placement & networking, if meeting is not possible try for conference call} industry association to which company belongs - {try meeting somebody might be helpful for your final placement & networking} research done by creditble source - you will be submitting this to prove your data source. stock exchange website also have data - BSE or NSE , please be careful in using this. there is data submitted by company which is authetic and second is the data given by BSE itself - you need to be careful with that if you are using that, verify its veracity then proceed. (you would be surprise to see how much mistake they make, so be careful with this one) I am targeting 27 or 28st Sept'2012 (either of the day) for presentation, hence you all would have to send me your ppt, along with excel calculation and all your data source latest by 21st Sept 2012 by 12am midnight. if you fail, kiss your internal marks good bye (pray that I remember your contribution to class discussion, provided you had contributed anything) all presentation would be done in one day, group to present first & next would be choosen by me on random basis and so would be presenter. There are many people who have contributed ZERO to classroom discussion, they would be my first target so make sure your weakest link in your group is prepared strongly. Each group would get 15-20mins for presentation & 5-10mins would be for Q&A.however if you presentation lasts for 510mins i am ok as long as it covers what is explained above (however i am not ok with your presentation goes on for 30minspractice your presentation before hand, time management, i would be carrying stop watch for this ) your presentation should carry historic & forecasted financials How would i do it, if i were you go to company website - understand company & products first, then do business model of it. read annual reports of last 5yrs.

find out competitors (minimum-2)- visit their site and understand them, how are they different from my (above) company, read their annual reports of last 5yrs. then visit industry association site , office and meet people in person. talk to customers, suppliers, anybody connected to company. Get my financial model ready - get ready with historic numbers (minimum that of last 5years) in excel along with provision for future numbers. Along with all valuation model feed in. Based on this prepare key question i need to ask to company to understand future of the company & industry. call up the company and try to fix 15-20mins meeting with Investor relation guy. try to meet him & convince him for 5mins meeting with CEO or CFO. come back work on financials - put in growth estimates & other details - forecasted financials ready & so shud be valuation voila I am done. only thing - take a call on which is the best valuation techique - convey group meeting & reach conclusion. prepare ppt and mail it :-) in case of any query, mail me & i would be happy to help you. Best of Luck