Posted: September 13th, 2017

PMP Ltd analysis: Valuation Model – in MS Excel

Paper, Order, or Assignment Requirements

Company name: PMP Ltd
Company Code: PMP.AX

Suppose you are all young securities analysts, working in a brokerage firm which specialises  in providing analysis of Australian-listed small and micro-cap stocks. You have access to publicly available information relevant to the valuation of ASX- listed shares.
You are asked to assist a senior financial analyst by collecting and analysing relevant company-specific and market information and preparing a valuation model for a publically-listed Australian stock (see below for how to find out your group and its assigned ASX-listed company). You are expected to determine whether the brokerage firm should recommend that its clients buy, hold or sell the share.
The model may make use of various equity valuation techniques covered in the AFIN353 course. As a minimum, it is expected that you will use DCF method, and also attempt the Multiples method by referencing data for comparable firms.
To build the model and assumptions you will need to research more than the company itself. You will need to research and assess the macro-economy, the industry, the firm’s competitive position. Critical elements of your research will form part of the report.
Your assignment your group submits will comprise:
a) Valuation Model – in MS Excel:
– Assumptions clear – ideally listed upfront on a separate tab
– Working valuation including pro-forma financial statements and sensitivity analysis
Do not hard code the cells as the senior analyst may need to ‘tweak’ the assumptions.