Global Financial Management

  You have recently been employed as an investment analyst to examine Australian stocks by Newcastle GMBA Investment Group. The firm is particularly interested in undertaking research with respect to the following listed Australian companies: • APA Group (ASX Code: APA) • BHP Group Ltd (BHP) • Commonwealth Bank of Australia (CBA) • CSL Ltd (CSL) • Goodman Group (GMG) • Telstra Corporation Ltd (TLS) • Transurban Group (TCL) • Wesfarmers Ltd (WES) • Wisetech Global Ltd (WTC) • Woodside Energy Group LTD (WDS) • Woolworths Group Ltd (WOW) As a starter in the investment firm, your primary role is to assist a senior financial analyst by collecting and analysing relevant company-specific and market data for one of the above companies. You should prepare an analyst report for the company that you select. The report should contain the following sections: 1) An executive summary that provides a trade recommendation on the firm and is logically supported by the highlights from each of the section of the report. (10 marks) 2) A brief overview of the firm’s operations and a summary of the most recent financial results and keys news from this year. (10 marks) 3) A discussion of risks that may affect the firm. The risks should be classified into unexpected yet possible macroeconomic, industry and firm-specific events that may affect the firm’s future cash flows and hence share price. (20 marks) 4) Calculate a fair value for the stock. To undertake this valuation, students should collect or measure firm financial performance, forecast future performance and provide a valuation using the dividend discount model. All inputs and estimates need to be justified. (20 marks)