SCENARIO:

You are a financial industry analyst; your current assignment is to report based on an analysis of Bank of Montreal (TSX: BMO.TO), including both a qualitative and quantitative

assessment (i.e. perform a valuation), and conclude whether BMO.TO is a "Buy" or "Sell" investment.

Your analysis should include an assessment of BMO's key competitors (such as RBC, CIBC, TD, BNS, National Bank) in the determination of a recommendation to "buy" or "sell" the stock. In addition, your analysis should include a comparison of your calculated valuation of the stock compared to the company's current trading price of the stock and a determination of whether, in your opinion, the stock is valued correctly in the marketplace.

In terms of valuation of the company, please use one of the methodologies discussed in class on stock valuation, such as the dividend growth model or discounted cash flow (using CAPM) model.

Qualitative o Explanation of assumptions used in the quantitative section

o Financial analysis of peers - explanation of ratio analysis - company vs. peers

Quantitative analysis o Financial ratio analysis of company

o Financial analysis relative to peers

o Valuation of the company using a method used in the course

o Comparison of valuation to market value

o The valuation should as at a date that is consistent with the most recent financial information used in the analysis

Part 3 - Recommendation (30%)

Recommendation / conclusion, which is supported by the analysis

Qualitative analysis could include:

Background on company

SWOT - strengths, weaknesses, opportunities, threats

PEST - political, economical, social, technological