Short Research Writing Paper – check list Add Bookmark Previous  Next  0 %0 of 10 items complete Show data table for Item Completion. · Top of Form Research Bottom of Form · Top of Form Cite Capture citations in proper format for everything you read.  Alphabetize by author and then proritize sources with the outline.  Check ssrn.com, check UMUC Library - always ask for journal and/or search ideas.  Find enough scholarly content to support writing 1.5x-2x your target length. Bottom of Form · Top of Form Outline Bottom of Form · Top of Form Thesis Whate is your research question?  Don't start without one! It is ok to change/modify your research question - If necessary. You must do so formally and re-start/re-check your concept research citations, etc. Bottom of Form · Top of Form Which Measures? Which Measures? *actual observation, 3y moving average, 5y arithmetic avg, YTD avg, geometric mean, trend, standard deviation *variance, ? Bottom of Form · Top of Form Which ratios? Which ratios? *Financial Performance [Return-Capital Employed, Capital, Invested Capital, Assets, duPont], *Leverage [financial, operational, debt solvency], *Cash Flow/Earnings [Unlevered Free Cash Flow, Operating Income, EBITDA, Free Cash Flow to Equity, Cash Conversion Cycle to DSO and Sales growth] Bottom of Form · Top of Form Draft Bottom of Form · Top of Form First Pass Begin writing notes in your outline.  Move to paragraph format outside of outline. Bottom of Form · Top of Form Finalize Bottom of Form · Top of Form Recommendation Buy, Sell or Hold this enterprise at current prices? How did you assess barrier to entry and/or barrier to exit/liquidation? What are some possible contingencies/uncertainty that may change your mind in the short-term?  What are some Long-term issues? Resist the temptation to introduce or argue against "new evidence" .  Stay within the scope of your thesis- evidence-discussion.  Bottom of Form · Top of Form Addendum Bottom of Form · Top of Form Tables List your tables before starting a draft - they will be much easier to cite! Bottom of Form · Top of Form Concept Bottom of Form · Top of Form Financial Ratio Analysis Which ratios? *Financial Performance [Return-Capital Employed, Capital, Invested Capital, Assets, duPont], *Leverage [financial, operational, debt solvency], *Cash Flow/Earnings [Unlevered Free Cash Flow, Operating Income, EBITDA, Free Cash Flow to Equity, Cash Conversion Cycle to DSO and Sales growth] Which Measure? *actual observation, 3y moving average, 5y arithmetic avg, YTD avg, geometric mean, trend * Bottom of Form · Top of Form Ranking Use absolute and relative measures of value to rank businesses.  See relative positions by earnings yield (EY)and return on capital employed (ROCE) NOTE: other metrics can be substituted or added but for this class, let's concentrate on these two - EY and ROCE. Bottom of Form · Top of Form Discounted Cash Flow DCF is a traditional income valuation model for valuing.

1. Short Research Writing Paper – check list
Add Bookmark
Previous Next
0 %0 of 10 items complete
Show data table for Item Completion.
·
Top of Form
Research
Bottom of Form
·
Top of Form
Cite
Capture citations in proper format for everything you read.
Alphabetize by author and then proritize sources with the
outline.
Check ssrn.com, check UMUC Library - always ask for journal
and/or search ideas. Find enough scholarly content to support
writing 1.5x-2x your target length.
Bottom of Form
·
Top of Form
Outline
Bottom of Form
·
Top of Form
Thesis
Whate is your research question? Don't start without one!
It is ok to change/modify your research question - If necessary.
You must do so formally and re-start/re-check your concept
research citations, etc.
Bottom of Form
·
Top of Form
Which Measures?

2. Which Measures?
*actual observation, 3y moving average, 5y arithmetic avg,
YTD avg, geometric mean, trend, standard deviation
*variance, ?
Bottom of Form
·
Top of Form
Which ratios?
Which ratios?
*Financial Performance [Return-Capital Employed, Capital,
Invested Capital, Assets, duPont],
*Leverage [financial, operational, debt solvency],
*Cash Flow/Earnings [Unlevered Free Cash Flow, Operating
Income, EBITDA, Free Cash Flow to Equity, Cash Conversion
Cycle to DSO and Sales growth]
Bottom of Form
·
Top of Form
Draft
Bottom of Form
·
Top of Form
First Pass
Begin writing notes in your outline. Move to paragraph format
outside of outline.
Bottom of Form
·
Top of Form
Finalize
Bottom of Form
·
Top of Form
Recommendation
Buy, Sell or Hold this enterprise at current prices?
How did you assess barrier to entry and/or barrier to
exit/liquidation?

3. What are some possible contingencies/uncertainty that may
change your mind in the short-term?
What are some Long-term issues?
Resist the temptation to introduce or argue against "new
evidence" . Stay within the scope of your thesis- evidence-
discussion.
Bottom of Form
·
Top of Form
Addendum
Bottom of Form
·
Top of Form
Tables
List your tables before starting a draft - they will be much
easier to cite!
Bottom of Form
·
Top of Form
Concept
Bottom of Form
·
Top of Form
Financial Ratio Analysis
Which ratios?
*Financial Performance [Return-Capital Employed, Capital,
Invested Capital, Assets, duPont],
*Leverage [financial, operational, debt solvency],
*Cash Flow/Earnings [Unlevered Free Cash Flow, Operating
Income, EBITDA, Free Cash Flow to Equity, Cash Conversion
Cycle to DSO and Sales growth]
Which Measure?
*actual observation, 3y moving average, 5y arithmetic avg,
YTD avg, geometric mean, trend
*
Bottom of Form

4. ·
Top of Form
Ranking
Use absolute and relative measures of value to rank businesses.
See relative positions by earnings yield (EY)and return on
capital employed (ROCE)
NOTE: other metrics can be substituted or added but for this
class, let's concentrate on these two - EY and ROCE.
Bottom of Form
·
Top of Form
Discounted Cash Flow
DCF is a traditional income valuation model for valuing cash
flow income streams. Our unique twist is we want to always
find the unlevered free cash flow to isolate the operating
productivity of a business. Alternatively, we can find the Free
Cash Flow to the Firm or Free Cash Flow to Equity.
We can always add multiple income streams to the valuation
model and compare. Carefully evaluate management capital
allocation and financing decisions including compensation to
understand value management may or may not be adding outside
of operations.
Bottom of Form
FINC440- Security Analysis and Valuation
Spring 2015
Professor Marcoux
CONTENT GUIDE FOR WRITTEN COMPANY ANALYSIS
AND VALUATION RESEARCH PAPER
Use these subheadings:
Introduction (Brief – 1/2 page)
Investment Thesis

5. Overview of the contents of the paper to follow
Overview of Company (Brief – 1/2 page)
History and principal strategic objectives
Primary Financial Ratios related to performance and valuation
Industry Overview and Analysis (Brief – 1/2 page)
Analysis of industry and opportunities for growth
Principal competitors in the industry
Evaluate position of company in the industry and how its
competitive position and strategic
plans are likely to affect company and stock values
Financial Analysis for Valuations (3 to 4 pages)
Financial Ratio Analysis [3-5 years of financial performance
data]
Historical ratio analysis [ratios related to valuation]
Cross-sectional ratio analysis
Comparisons to comparable company averages w/std
deviation
Use tables & figures (graphs) to present valuation data for
analysis
Explain what results mean for analysts and investors
Income Valuation by Discounted Cash Flow Model
1. Free cash flow - use Macabus FCF – Equity equation;
use ValuePro.net or other FCF to Firm and FCF to Equity model
(Income Valuation)
Make sure all input variables are justified
Explain what results mean for analysts and investors
Relative Valuation by Market Comparables
Relative valuation - use textbook Valuation by Comparables
model or instructor ranking model – show all work and
references
Explain what results mean for analysts and investors

6. Development and Defense of Investment Thesis (1 to 2 pages)
Recommend buy, sell, or hold
Demonstrate critical thinking about recommendation
Present strengths and weaknesses of the recommendation
Assure that recommendation is supported by logic,
comparative
analysis and valuations
Summary / Conclusion (1/2 page)
Review principal observations and conclusions
Review final recommendation
No new information is introduced in this section.
Paper includes: 8-10pages of narrative; spreadsheet w/3-5 years
of financial data; citations/references for all sources; show all
work for calculations; checklist
FINC 355 WEEK 5 DISCUSSION:
1. Discuss advantages, disadvantages, and characteristics of tax
deferred annuities.
2. Discuss similarities and differences between the different
approaches to non-qualified deferred compensation plan funding
and benefits.
3. Discuss the tax implications related to Section 457 plans.
FINC 440 WEEK 5:
1. Company Analysis and Valuation Research Paper
The Company Analysis and Valuation Research paper was
assigned. You should be well along working on analysis of a
financial services company in parallel with your short research

7. paper assignments. Please find attached a content guide
2. Discounted Cash Flow Valuation – Due
Using the facilities of ValuePro (http://www.valuepro.net) for
the company that you have selected to study conduct a
discounted cash flow valuation. The analysis should explain
each variable used in the analysis, why you accepted the given
input, or how and why you changed a variable. The analysis
should also examine the relevant cash flows, compare the final
valuation to the stock’s current price and explain any
differences. (Note: Remember to adjust the equity risk premium
to between 5% and 6%; also, adjust the growth rate to an
appropriate long-term growth rate.)
INSTRUCTIONS:
Calculation of Unlevered Free Cash Flow
EBIT
( + ) Amortization of non-deductible goodwill
EBITA
( − ) Taxes on EBITA (EBITA × projected tax rate)
[Unlevered net income]
( + ) D&A and other non-cash charges affecting EBIT (excl.
non-deductible goodwill amortization)
( + ) Changes in deferred taxes
( − ) Capital expenditures
( − ) Increase in non-cash working capital
[Unlevered free cash flow] (UFCF)
http://macabacus.com/valuation/dcf/unlevered-fcf
FINC 440 WEEK 5 DISCUSSIONS:
1. Questions to Ask CEO About Valuation – If you were
directed to make a visit to a company’s CEO for the purpose of
obtaining information to complete a valuation of that company’s
common stock, what questions would you ask and why?
2. Adjusted Present Value –
Adjusted Present Value (or APV) is an alternative to the
discounted free cash flow valuation approach. Of what value is

8. the APV method in your judgment? Should an analyst use both
methods?
3. Non-Operating Assets –
Is it important to address the value of non-operating assets in
arriving at an estimate of the value of equity per share? Why?
Offer an example?
4. Increasing Value of Firm –
If the board of directors of the firm where you were the CEO is
calling for an increase in the value of the firm, what would you
do to respond positively to that direction? (Hint, see Chapter
31.)
5. Present Discounted Cash Flow Valuation –
Post the results of the Discounted Cash Flow Valuation that you
prepared for this week’s assignment that is to be submitted to
the Assignment Folder.
6. Most Important Things Learned –
What are the most important things you learned from the study
of this week’s readings and assignments?