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Company (Boeing)Report: Valuation Estimates and Recommendations Assignment.
Overview
As noted in Chapter 11 of the Hitchner textbook (page 496): “The detailed valuation report is appropriate, as required or requested, when the analyst has been engaged to prepare a comprehensive valuation of a business, an interest in a business, a security, or an intangible asset. The report is the primary work product of the valuation process and should be prepared with objectivity and integrity in accordance with business valuation standards and procedures. It should describe valuation procedures in sufficient detail to enable the intended users to understand the work performed and the conclusion reached. While there is no universal format for reporting on a detailed valuation, there is general consensus on the elements that can be included.”
Hitchner then provides a list that includes, for the most part, what you have completed in the past two Company Report assignments (in particular, items 5, 6, 7 and 8 on page 496) and what you will complete in this assignment (items 9, 10, 11, 12, and 13) as following:
9- Valuation approaches and methods considered.
10- Valuation approaches and methods used.
11-Consideration of applicable discounts and premiums (if any).
12-Nonoperating and excess assets.
13-Conclusion and reconciliation.
. Note that this assignment is essentially an application of Chapters 5, 6, 7, 8, 9, and 10 to your chosen company (and possibly something from chapters 13 to 31 if any of these special topics apply).
Instructions
For this assignment, you will conduct a valuation estimate for your chosen company. Your report should include (at a minimum) the following sections:
1. Introduction
2. Description of the valuation approaches and methods considered (note, unless you have a specific reason why one of the three valuation approaches discussed in Hitcher does not apply to your chosen company, you should apply all of the Hitchner approaches to your company valuation).
3. Identification and evaluation of any nonoperating and/or excess assets.
4. A risk analysis of your chosen company and an associated discussion of how applicable discounts and premiums (if any – remember, you are “assuming” that your chosen company is private) were computed.
5. Application of valuation approaches and methods used to your chosen company (in this, the largest section of the paper, you must completely and clearly demonstrate how you derived a specific value estimate for your company using each approach; thus, you will end up with three values that will most likely not be the same).
6. Reconciliation of the three valuation approach estimates (which is most accurate and why).
7. For the first time in this assignment, please look up the company’s stock price on the last day of your financial data (for example, if your company’s fiscal year end is June 30 and the last data that you used in your report was June 30, 2020, look up the stock price on June 20, 2020, or the closest trading day to that date). Using that stock price, compute the market value of your chosen company. Compare that value to your reconciliation number. Which is higher? Why? What is your buy/sell recommendation based on this comparison? Why?
For this specific assignment, all relevant data tables should be included Appendices. Your tables must be clearly titled/labeled so it is easy to find the tables when they are discussed in the main body of your paper.
· Assignment length: At least 10 pages, double-spaced (excluding title page and references) in current APA format.
· Number of citations: At least 3 (with a minimum of 2 articles per major topic). Remember: any article/source listed in your references must be cited at least once in your paper.
· Accepted sources: Books or other scholarly/professional sources. Remember, Investopedia, Wikipedia, websites, periodicals (e.g., newspaper, magazine, newsletters), and blogs are not scholarly/professional sources. You can use these in your paper (if properly cited), but they do not count towards the required number of citations.
Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.
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