Analysis about Associated British Foods plc with some basic information about the firm, the primary sector and industry in which it operates, the investment recommendation, the current stock price, and market capitalization, and the target stock price.

In addition, liquidity and float of security are important considerations for the equity analyst. Consequently, a relatively small float deserves mention. Finally, it is good practice to identify the major shareholders of a firm.

INVESTMENT SUMMARY

A brief description of Associated British Foods plc, significant recent developments, an earnings forecast, a valuation summary, and the recommended investment action. If the purchase or sale of a security is being advised, there should be a clear and concise explanation as to why the security is deemed to be mispriced. That is, what is the market currently not properly discounting in the stocks price, and what will be the catalyst to prompt the market to reprice the security?

BUSINESS DESCRIPTION

A detailed description of Associated British Foods plc and its products and services. It should also convey a clear understanding of the companys economics, including a discussion of the key drivers of revenues and expenses. Much of this information can be sourced from the company itself and via its regulatory filings, as well as industry publications.

MANAGEMENT & GOVERNANCE

A critique of the Associated British Foods plc management and board. Senior managements history with the firm and their record of capital allocation are important considerations, as are their compensation and incentive plans, and levels of stock ownership. Is there a succession plan in place for senior management? A review of the composition of the companys board of directors should note whether it is sufficiently independent or if there is evidence or risk of entrenchment.

INDUSTRY OVERVIEW AND COMPETITIVE POSITIONING

An overview of the industry dynamics, including a competitive analysis of the industry. Most firms annual reports include some discussion of the competitive environment. A group of peer companies should be developed for purposes of competitive analysis. The Porters Five Forces framework for industry analysis is an effective tool for examining the health and competitive intensity and of the industry.

VALUATION

A thorough valuation analysis of Associated British Foods plc using Free cash flow model and Dividend discount models .

FINANCIAL ANALYSIS

A detailed analysis of the Associated British Foods plc historical financial performance, and a forecast of future performance. Accordingly, a careful reading of the footnotes of a companys 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 firms financial results.

Employ industry-specific financial ratios as part of the financial analysis.

INVESTMENT RISKS

Address potentially negative industry and company developments that could pose a risk to the investment thesis. Risks can be operational or financial in nature or related to regulatory issues or legal proceedings.

Refer to yahoofinance.com for financials of Associated British Foods plc and also to annual reports of Associated British Foods plc