Investment Banking Assignment -
Topic: Comparable Companies Analysis Intel, NVIDIA Qualcomm TI (Texas Instruments).
You are an investment banker who has assigned the task to evaluate, through the first tool of valuation (comparable companies analysis), a target company. The target company needs to be a US public listed company. Once you determine and decide (as a group) the target company, you will need to find a set of comparable companies.
To do so, you have to study the target's business and financial profile. Specifically:
Business Profile -
- Sector: select companies in similar sector or sub-sector.
- Products and Services: select companies selling similar products or services.
- Customers and End Markets: similar customer base and end market (example selling to homebuilders or retailers).
- Distribution Channel: select companies that have similar distribution channels (example selling to the retail or wholesale market).
- Geography: select companies operating in similar geographic areas.
Financial Profile -
- Size: select companies with similar size (sales, gross profit, EBITDA, EBIT, net income...)
- Profitability: use measures of profit at the numerator and sales in the denominator. Higher profit margins, higher valuation.
- Growth Profile: analyse growth of sales, EBITDA, earnings per share (EPS).
- Return on Investment: measure the company's ability to provide earnings. Return on invested capital (ROIC), return on assets (RoA) and return on equity (RoE) are the most commonly used.
- Credit Profile: measure the level of leverage of a company and its ability to generate interest payments.
You only need finish the Business Profile part in total 700 words.
Attachment:- Assignment Files.rar