We are supporting Toyota and comparing with other brands in automobile companies. Even provide required graphs and chart.
VALUATION
This section should include a thorough valuation analysis of the company using conventional valuation metrics and formulas. Equity valuation models can derive either absolute or relative values. Absolute valuation models derive an asset’s intrinsic value, and generally take the form of discounted cash flow models. Relative equity valuation models estimate a stock’s value relative to another stock, and can be based on a number of different metrics, including price/sales, price/earnings, price/cash flow, and price/book value. Because model outputs can vary, as a check, more than one valuation model should be used. (200-250) words.
FINANCIAL ANALYSIS
This section should include a detailed analysis of the company’s historical financial performance, and a forecast of future performance. Financial results are commonly manipulated to portray firms in the most favourable light. It is the responsibility of the analyst to understand the underlying financial reality. Accordingly, a careful reading of the footnotes of a company’s financial disclosures is an essential part of any examination of earnings quality. Non-recurring events, the use of off-balance sheet financing, income and reserve recognition, and depreciation policies are all examples of items that can distort a firm’s financial results.
Financial modelling of future financial results helps to measure the effects of the changes in certain inputs on the various financial statements. Analysts should be especially careful, however, about extrapolating past trends into the future. This is especially important in the case of cyclical firms. Projecting forward from the top or bottom of a business cycle is a common mistake. Finally, it can be informative to employ industry-specific financial ratios as part of the financial analysis. Examples include proven reserves/share for oil companies, revenue/subscriber for cable or wireless companies, and revenue/available room for the hotel industry. (250-300) words.
