This document discusses the technical analysis of Vonage Holdings Corp. It calculates key indicators such as market capitalization ($1.38 billion), enterprise value ($1,785.6 million), EV/EBITDA ratio (14.43), P/E ratio (33.26), PEG ratio (2.62), and growth rates (45.86% in 2017 and 5.36% in 2018). The analysis finds that Vonage has an undervalued stock based on these indicators. Specifically, its EV/EBITDA ratio suggests it is undervalued compared to industry standards.
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.
Detailed economic, industrial and company analysis is conducted here to measure performance of banking industry with special reference to public sector banks by Fundamental Analysis.
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.
Detailed economic, industrial and company analysis is conducted here to measure performance of banking industry with special reference to public sector banks by Fundamental Analysis.
Running head TOYOTA COMPANY VALUATION .docxtoltonkendal
Running head: TOYOTA COMPANY VALUATION 1
TOYOTA COMPANY VALUATION 2
Toyota Company Valuation
Student Name
Institution
Introduction
Toyota Company is an organization which operates globally as discussed in the previous assignment. It deals with the manufacture and sells of vehicles and their spare parts. To evaluate an organization means going through some steps which a company use to conduct an assessment of the economic value in a market. The process is mostly used by that individual who takes part in the financial market which assists them to determine the price to pay or take while transacting business. Determining the financial status of an organization assist investors to be in a position to determine whether they should invest in that organization or what. Price-earnings ratio is one of the commonly used tools more so when selecting stock (Ahmad et al., 2016).Decision making in an organization can be challenging. Hence it requires a person conduct appropriate analysis to avoid losses in an organization. Also, it is important that each organization ensures that they have the up to date financial report. With this, it enables an organization to determine whether it is working as per the goals and strategies which the organization has set.
PE Ratio
It is a kind of ration which in modern-day business play a major role more so while selecting the kind of stock to work with. The formula for getting the price earning ration is:
Price-earnings ratio=determine the current market worth per share/current earning worth in each share
PE ration gives the stakeholder, employee management and investor’s idea of what price the current market is willing to pay for the company earning. It explains the value of a product in the market. Research indicates that the recent price earning ration for Toyota Company is 10.72 as per 13th December 2017 (Buchman et al., 2016).An organization with a high PE ratio indicate that there is the great hope for it to perform well in future and also investors may wish to invest in this business. It is the case with Toyota which currently is doing well and hence it an encouragement to the investor to invest there.
Comparison with Other Organization
From the current valuation of General Motor, it is indicated that the current price earnings ratio is 8.6 as per 13th December 2017 showing that it is lower than that of the Toyota Company. However, by this, it indicates that Toyota is in a better position compared to General Motors and most investors would prefer investing in Toyota (Ahmad et al., 2016). For the GM there was a decrease in sales because of the high competition in the market which lead to a decline in the ratio.
Whether the Organization Is Undervalued or Overvalued
To determine whether an organization is undervalued or overvalued there are ...
Describe the Comparable Company Analysis valuation method including .pdfakukukkusarees
Describe the characteristics of each of the following trade blocks. Be certain to explain the ways
in which they are the same and the ways in which they differ.
a. Economic union
b. Common market
c. Customs union
d. Free trade area
Solution
a. Economic union : It is an union among different countires, where they will accept on common
policies and procedures to trade among the countries.
B. Common market : it is another type of trade block and it is basic of the all, in common market
there would not be much rules and regulations about the import and export between countries
and they will share both goods and services among the countries.
c.Customs union : It is also group of countries where the member countries will agree on mutual
benifit like they will not charge customs fee for mutual exchange.
d. Free trade area : In free trade area type the member countries will not charge any duties/fee
and the member countries can freely trade, export and import among the member countries
which will give more advanced products and services.
The above explained trade blocks are similiar in some and different in other means, the overall
advantage of these trade blocks is all the member countries will have the option for free trade
among other members and import and export will be more easily. By this means countries will
earn more income at the same time the customers will also benifited on competitive advantage.
Where as due to this trade blocks countries which are not member countries will not allowed to
trade with the member countries which will lead to non-protection of customer rights where they
will not get access to other foreign country products which are non-members..
Private Equity Valuation Methods improve active equity portfolio by valuing a business/company that is the core task of the financial analyst. Most PE/VC firms estimate a company’s value with the help of Equity Valuation Methods. To evaluate an organization, there should be enough understanding of Venture Valuation, which is considered as the most holistic evaluation approach.
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
Compose a paper using the five sources attached. The paper should .docxdonnajames55
Compose a paper using the five sources attached. The paper should summarize not PLAGARIZE all 5 articles regarding electronic medical records. APA FORMAT AND USE THE SOURCES GIVEN ONLY. MAKE SURE TO USE INTEXT CITATION FOR THEESE SOURCE. PAPER SHOULD BE 6 PAGES LONG.
Financial Ratio Analysis Worksheet
Your Full Name:
Ahmed Alothman
2011
2010
2009
Basic Rules
Liquidity
Current Ratio
1.50
1.6
1.2
Should be >1.00
Quick Ratio
0.86
0.95
0.6
Good to see close to 1
Leverage
Debt to total asset ratio
0.19
0.19
0.26
Good to see less than 1
Debt to Equity ratio
1.003
1.03
1.35
Smaller is better
Activity
Inventory turnover
7.8
8.3
7
Higher turnover will be better --- Smaller inventory level will increase the turnover!
Fixed asset turnover
3.3
3.2
3.2
Higher turnover will be better --- Smaller fixed assets level will increase the turnover (Productivity of the fixed assets)!
Profitability
Gross profit margin
0.3
0.3
0.3
Higher is better (Lower cost of goods sold or Higher sales will increase the margin) --- Strategic directions (Ex. Focusing on sales quantity or Lean operations)
Operating profit margin
0.06
0.06
0.06
Higher is better – Operational efficiency will be indicated. Better cost structure might increase this margin.
Net profit margin
0.04
0.03
0.03
Higher is better. Total profitability (Corporate profitability). Check the interest expense and Discontinued operations.
Return on total Assets (ROA)
0.06
0.06
0.06
Higher is better. Consider EBIT and portion of total assets. The total sales for each $1 of total assets.
Your own financial assessment / Analyses / Suggestions:
Liquidity of Staples:
Liquidity ratios are used to measures the ability of the company to pay off its current liabilities.
Using current ratio it shows that staples can pay off its current liabilities more than 1.50, 1.6, 1.2 times respectively and still remain with enough. The company is stable in paying off its current liabilities
Using quick ratio Staples can pay off its liabilities 86 percent, 95 percent and 60 percent respectively of its current liabilities.
Leverage of Staples:
Leverage measures the risk level. But for staples, the company's assets are far more than its liabilities thus the company can be able to access loan application since its ability to pay is far better and stronger. The company is less risky.
Staples has a Debt to equity ratio of 1 which means that investors and creditors have an equal stake in the company's assets. Lower ratio shoes a more stable business. Creditors always views a higher debt to equity as risky and the investors have not funded the operations as the creditors have. The company should try and look for ways to reduce on the Debt to equity ratio.
Activity of Staples:
This measures efficiency on how Staples can control its stock. Staples has a very good inventory control system. This company can sell off its inventory more than 7 times in a single year.
T.
Running head TOYOTA COMPANY VALUATION .docxtoltonkendal
Running head: TOYOTA COMPANY VALUATION 1
TOYOTA COMPANY VALUATION 2
Toyota Company Valuation
Student Name
Institution
Introduction
Toyota Company is an organization which operates globally as discussed in the previous assignment. It deals with the manufacture and sells of vehicles and their spare parts. To evaluate an organization means going through some steps which a company use to conduct an assessment of the economic value in a market. The process is mostly used by that individual who takes part in the financial market which assists them to determine the price to pay or take while transacting business. Determining the financial status of an organization assist investors to be in a position to determine whether they should invest in that organization or what. Price-earnings ratio is one of the commonly used tools more so when selecting stock (Ahmad et al., 2016).Decision making in an organization can be challenging. Hence it requires a person conduct appropriate analysis to avoid losses in an organization. Also, it is important that each organization ensures that they have the up to date financial report. With this, it enables an organization to determine whether it is working as per the goals and strategies which the organization has set.
PE Ratio
It is a kind of ration which in modern-day business play a major role more so while selecting the kind of stock to work with. The formula for getting the price earning ration is:
Price-earnings ratio=determine the current market worth per share/current earning worth in each share
PE ration gives the stakeholder, employee management and investor’s idea of what price the current market is willing to pay for the company earning. It explains the value of a product in the market. Research indicates that the recent price earning ration for Toyota Company is 10.72 as per 13th December 2017 (Buchman et al., 2016).An organization with a high PE ratio indicate that there is the great hope for it to perform well in future and also investors may wish to invest in this business. It is the case with Toyota which currently is doing well and hence it an encouragement to the investor to invest there.
Comparison with Other Organization
From the current valuation of General Motor, it is indicated that the current price earnings ratio is 8.6 as per 13th December 2017 showing that it is lower than that of the Toyota Company. However, by this, it indicates that Toyota is in a better position compared to General Motors and most investors would prefer investing in Toyota (Ahmad et al., 2016). For the GM there was a decrease in sales because of the high competition in the market which lead to a decline in the ratio.
Whether the Organization Is Undervalued or Overvalued
To determine whether an organization is undervalued or overvalued there are ...
Describe the Comparable Company Analysis valuation method including .pdfakukukkusarees
Describe the characteristics of each of the following trade blocks. Be certain to explain the ways
in which they are the same and the ways in which they differ.
a. Economic union
b. Common market
c. Customs union
d. Free trade area
Solution
a. Economic union : It is an union among different countires, where they will accept on common
policies and procedures to trade among the countries.
B. Common market : it is another type of trade block and it is basic of the all, in common market
there would not be much rules and regulations about the import and export between countries
and they will share both goods and services among the countries.
c.Customs union : It is also group of countries where the member countries will agree on mutual
benifit like they will not charge customs fee for mutual exchange.
d. Free trade area : In free trade area type the member countries will not charge any duties/fee
and the member countries can freely trade, export and import among the member countries
which will give more advanced products and services.
The above explained trade blocks are similiar in some and different in other means, the overall
advantage of these trade blocks is all the member countries will have the option for free trade
among other members and import and export will be more easily. By this means countries will
earn more income at the same time the customers will also benifited on competitive advantage.
Where as due to this trade blocks countries which are not member countries will not allowed to
trade with the member countries which will lead to non-protection of customer rights where they
will not get access to other foreign country products which are non-members..
Private Equity Valuation Methods improve active equity portfolio by valuing a business/company that is the core task of the financial analyst. Most PE/VC firms estimate a company’s value with the help of Equity Valuation Methods. To evaluate an organization, there should be enough understanding of Venture Valuation, which is considered as the most holistic evaluation approach.
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
Compose a paper using the five sources attached. The paper should .docxdonnajames55
Compose a paper using the five sources attached. The paper should summarize not PLAGARIZE all 5 articles regarding electronic medical records. APA FORMAT AND USE THE SOURCES GIVEN ONLY. MAKE SURE TO USE INTEXT CITATION FOR THEESE SOURCE. PAPER SHOULD BE 6 PAGES LONG.
Financial Ratio Analysis Worksheet
Your Full Name:
Ahmed Alothman
2011
2010
2009
Basic Rules
Liquidity
Current Ratio
1.50
1.6
1.2
Should be >1.00
Quick Ratio
0.86
0.95
0.6
Good to see close to 1
Leverage
Debt to total asset ratio
0.19
0.19
0.26
Good to see less than 1
Debt to Equity ratio
1.003
1.03
1.35
Smaller is better
Activity
Inventory turnover
7.8
8.3
7
Higher turnover will be better --- Smaller inventory level will increase the turnover!
Fixed asset turnover
3.3
3.2
3.2
Higher turnover will be better --- Smaller fixed assets level will increase the turnover (Productivity of the fixed assets)!
Profitability
Gross profit margin
0.3
0.3
0.3
Higher is better (Lower cost of goods sold or Higher sales will increase the margin) --- Strategic directions (Ex. Focusing on sales quantity or Lean operations)
Operating profit margin
0.06
0.06
0.06
Higher is better – Operational efficiency will be indicated. Better cost structure might increase this margin.
Net profit margin
0.04
0.03
0.03
Higher is better. Total profitability (Corporate profitability). Check the interest expense and Discontinued operations.
Return on total Assets (ROA)
0.06
0.06
0.06
Higher is better. Consider EBIT and portion of total assets. The total sales for each $1 of total assets.
Your own financial assessment / Analyses / Suggestions:
Liquidity of Staples:
Liquidity ratios are used to measures the ability of the company to pay off its current liabilities.
Using current ratio it shows that staples can pay off its current liabilities more than 1.50, 1.6, 1.2 times respectively and still remain with enough. The company is stable in paying off its current liabilities
Using quick ratio Staples can pay off its liabilities 86 percent, 95 percent and 60 percent respectively of its current liabilities.
Leverage of Staples:
Leverage measures the risk level. But for staples, the company's assets are far more than its liabilities thus the company can be able to access loan application since its ability to pay is far better and stronger. The company is less risky.
Staples has a Debt to equity ratio of 1 which means that investors and creditors have an equal stake in the company's assets. Lower ratio shoes a more stable business. Creditors always views a higher debt to equity as risky and the investors have not funded the operations as the creditors have. The company should try and look for ways to reduce on the Debt to equity ratio.
Activity of Staples:
This measures efficiency on how Staples can control its stock. Staples has a very good inventory control system. This company can sell off its inventory more than 7 times in a single year.
T.
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discuss the technical analysis and Enterprise Value Ratio of the Vonage.docx
1. Running head: TECHNICAL ANALYSIS 1
Technical Analysis
Student name
Professor name
Course name
March 26, 2017
2. TECHNICAL ANALYSIS 2
Introduction
This paper will discuss the technical analysis and Enterprise Value Ratio of the Vonage .
Technical analysis (TA) helps a man for orchestrating the general market picture while it lays the
best approach to direct based trading. Having a committed approach will be basic; uncommonly
in the midst of its first attempts to develop an individual exchanging style. The inspiration
driving TA is to do esteem gauges. By planning recorded market data of any instrument, a man
can endeavor to imagine how it should trade (Kim, 2015).
Indicators
The following are the commonly used indicators for the technical analysis of the common
stock of Vonage :-
Market Capitalization
The market capitalization of the Vonage is 1.38 billion (Yahoo). It is proportional to the
estimation of an association, and a man requires two bits of information for registering the
gathering's business sector capitalization that is the organization's share fetched and the amount
of shares amazing.
Enterprise Value
EV measures the estimation of the association, which is Vonage in this case, as on a
particular date. It has discovered by rolling out improvements in the market capitalization of the
Vonage . The EV of the Vonage 1785.6 million (Focus). The formula for calculating EV is as
follow:-
EV = Market Capitalization + Total Debt – Total Cash
3. TECHNICAL ANALYSIS 3
EV/EBITDA Ratio
The EV/EBITDA extent is a standard measure than the P/E proportion since it has not
impacted by changes in the capital structure. Consider a circumstance in which an association
raises an incentive back and uses these resources for repaying the credits (Pignataro, 2013). The
EV/EBITDA ratio is an extension of the EV/EBIT ratio. The EV/EBITDA ratio of the
Vonage is 14.43 (Focus).
P/E Ratio
Price/Earnings Ratio is a broadly utilized stock assessment measure. For security, the P/E
ratio has given by partitioning the last sale price by the average estimate for the predefined
monetary day and age. The P/E ratio of the Vonage is 33.26 for the year 2016 (Nasdaq, 2017).
The formula for calculating P/E is as follow:-
P/E = Market Price per Share/ EPS
PEG Ratio
Financial specialists are continually searching for organizations with excellent
development prospects offering at alluring costs. One prominent measurement used to
distinguish such stocks is the PEG proportion - which is essentially the Price Earnings portion
partitioned by the development rate. For this situation, we utilize the anticipated growth rate and
gauge income throughout the following 12 months (Kumar & Mohapatra, 2015). The PEG ratio
of Vonage is 2.62 (Vonage Holdings Corp. PEG Ratio, 2017). The following is the formula for
calculating the PEG ratio:-
PEG Ratio = PE Ratio/ Earning growth rate
4. TECHNICAL ANALYSIS 4
Growth Rate
The growth rate of the Vonage for the year 2017 is 45.86%, and for the year 2018 is
5.36%.
Analysis of EV and EV/EBITDA Ratio
This section will discuss the EV and EV/EBITDA ratio of the Vonage. The Enterprise
value of the Vonage will calculate as follow:-
EV = Market Capitalization + Total Debt – Total Cash
= 1493.026 + 322.302 – 29.679
= 1785.6
The EV/EBITDA ratio of the Vonage can be calculated as follow:-
EV/EBITDA = EV/ (EBIT + Depreciation + Amortization)
= EV/EBITDA
= 1785.6/43.887
= 40.69
Measurement of Overvaluation or Undervaluation
The stock of Vonage has undervalued as per the indicators and the analysis. Money
related authorities mainly use an association's endeavor different to choose if an organization has
thought little of or overstated. The fundamental purpose behind all the cynicism encompassing
Vonage is falling income on the back of declining sales. A wander distinctive is useful for
5. TECHNICAL ANALYSIS 5
transnational examinations since it neglects the turning effects of individual countries' duty
evaluation methodologies. Therefore, the Analysis shows that Vonage is the best buy in the
current state due to the undervaluation but financial soundness.
Conclusion
Recognizing a different to respect an individual stock frequently includes contrasting an
organization's basics with an associate gathering and after that changing the associated
conference standard various to reflect variations between the individual organization and its
companions. On the off chance that the entry on value surpasses the cost of value, the cost will
exceed the book estimation of value; if the arrival on value is lower than the expense of value,
the price will be lower than the book estimate of value.
6. TECHNICAL ANALYSIS 6
References
Vonage Holdings Corp. PEG Ratio. (2017, April 03). Retrieved from Nasdaq:
http://www.nasdaq.com/symbol/vg/peg-ratio
Focus, G. (n.d.). Vonage Holdings Corp . Retrieved from Guru Focus:
http://www.gurufocus.com/term/ev/VG/Enterprise-Value/Vonage-Holdings-Corp
Kim, M. (2015). Half & Half Donation Series Step by Step Beginner to Advanced Stock Trading:
Fundamental Analysis, Basic Technical Analysis. Minjun Kim.
Kumar, N. B., & Mohapatra, S. (2015). The Use of Technical and Fundamental Analysis in the
Stock Market in Emerging and Developed Economies. Emerald Group Publishing.
Nasdaq. (2017, April 03). Vonage Holdings Corp. Analyst PE Estimates. Retrieved from
Nasdaq: http://www.nasdaq.com/symbol/vg/pe-ratio
Pignataro, P. (2013). Financial Modeling and Valuation: A Practical Guide to Investment
Banking and Private Equity. John Wiley & Sons.
Yahoo. (n.d.). Vonage Holdings Corp. Retrieved from Yahoo:
https://in.finance.yahoo.com/quote/VG?ltr=1
