Which should include its products and competitors

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Reference no: EM133752026

Question: Imagine that you are now working for the UAE company for which you conducted the DCF analysis. The company has asked you to recommend an investment strategy. You will write up a report for the company that addresses the following points below, and then recommend an investment strategy for the company based on the results and your analysis.

Provide an introduction to the industry, and the company, which should include its products, competitors, characteristics of the company, and its strategies and plans for the future.

Conclude if the company was overvalued or undervalued by the market. Assuming you did everything correctly the value you calculated (or the interval triangulated) should be close to (or include) the realized value which implies that the company is at-its-value. If the realized value is significantly above/below the calculated value (or interval) then it means that it is overvalued/ undervalued.
[If possible] Cross-check your recommendation with the recommendations made by relevant investment analysts. You should be able to find an online accessible financial analysis written by a financial analyst by the end of 2021. Make sure you cite your sources.
IMPORTANT NOTES:
Choose a public company traded in the stock market of the country you are residing in right now.
In your DCF analysis, to arrive at an appropriate valuation: Estimate FCF for 2022 (assume 2022 as Year 0 and include it in your valuation), project it over the next five years (2023-2028), and estimate a terminal value if you think the store will continue indefinitely (estimate a reasonable terminal growth rate).
Calculate your own WACC. Use CAPM to calculate the cost of capital. Assume a beta based on the systematic risk by looking up betas of public companies that are in the same industry and geography (Yahoo Finance shows equity betas which you will need to adjust by using Hamada's Equation to account for the public companies' debt; this is because you need an asset beta for your store given the assumption of no debt) or estimate your own beta using market data.

Reference no: EM133752026

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