Question: This step involves you forecasting for the next five (5) years the key accounting drivers of sales growth, profit margin, asset turnover and Return on
This step involves you forecasting for the next five (5) years the key accounting drivers of sales growth, profit margin, asset turnover and Return on net operating assets and including these figures in the Key Value Drivers worksheet in the spreadsheet. You will then arrive at the valuation of your firm.
You might like to compare your valuation for the firm with its current and past share price. For example, you can google 'share price' to find your company's share price history. There are many websites that can give you share price histories. Have a look at the firm's current share prices. Some people feel 'great' if they have ended up valuing their firm at close to its current share price; and 'worried' if their value significantly diverges from the current share price.
Include any commentary you wish to include about your valuation.Includes any comments or thoughts you wish to include about your forecasts and valuation. How confident are you with the results of your analysis? Would you make investment decisions based on your analysis? Why or why not? You may wish to comment about how effective you have found the Discounted cash flow (DCF) and economic profit approaches to be in valuing your firm. At the end of your analysis, please recommend whether you think equity investors should BUY, SELL or HOLD their shares in your firm, after considering your valuation of the firm and its current share price.
write down your comments in any form you wish. As a suggestion only, you could use the following headings: Background; Financial Highlights; Key Aspects of Forecasts; Valuation; Recommendation. Please feel free to write up your view of the value of your firm using whatever headings or formats you wish. I am interested in your considered opinions with supporting evidence. Please keep your comments reasonably brief. You can use bullet points where appropriate.
Share price- https://www2.asx.com.au/markets/company/ajx
| Alexium International Group ltd | |||||||||||
| KEY VALUE DRIVERS | |||||||||||
| Years ended 30 June | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | ||
| Actual | Actual | Actual | Actual | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | ||
| Sales growth (%) | -57.5% | 20.2% | 19.7% | 12.3% | |||||||
| PM (%) | -95.6% | -44.6% | -24.9% | -40.1% | |||||||
| ATO (times) | 1.26 | 1.22 | 1.53 | 2.16 | 0.00 | ||||||
| RINOA | |||||||||||
| US$ | US$ | US$ | US$ | US$ | $000 | $000 | $000 | $000 | $000 |
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