STOCK VALUATION REPORT OUTLINE

STOCK VALUATION REPORT OUTLINE
Below is an outline that you are expected to strictly follow when you write your stock valuation report.
1. Recommendation
 Buy, sell, or hold
2. Executive Summary (10%)
 Summary of the company’s business, various lines of businesses and its competitive position within
the industry.
 Highlight the primary economic factors and industry pressures, which impact the company
favorably or unfavorably.
 Describe the company’s growth prospects and profitability over the trailing 5 years and briefly
mention the relative balance strengths or weaknesses.
 Conclude with a recommendation to buy, sell or hold to stock.
3. Economic Analysis (10%)

 Provide a basic description of the business cycle the company is facing (expansion, contraction,
rebuilding, etc.) and indicate your prediction for the future economic prospects (best done as class
assignment).
 Discuss the impact of macroeconomic variables (for example, GDP, employment, government
budget, consumer sentiment, business inventories, interest rates, oil prices, etc.) and how they
usually affect the economy, the industry, and the company, its future earnings and the stock return
outlook.
4. Industry Analysis (10%)
 Describe the company’s industry position.
 Describe the Industry life cycle for the company. Highlight what stage the company is in and
outline what the company plans to do in the future.
 Analyze the company’s competitive position, strengths, threats, weaknesses and opportunities
(SWOT analysis).
 Describe any possible impacts of the regulatory environment on the industry and the company (for
example, FDA, Anti-trust, laws, trade barriers and regulations).