Writing Homework Help

You have been assigned with Bhp Billiton, and you are required to estimate the intrinsic value of this company, including a discussion on the investment horizon.

You are provided an excel valuation template for estimating the intrinsic value of equity. Do not attempt any cash-based or dividend discount valuation model.

Note the following aspects of the template:

• This is just a guideline, or a template and you are required to adjust the template model with items that describe the operations of your assigned company. Similarly, you will be required to adjust the timeline to match your forecasting period.
• You can form expectations using information from any relevant source, e.g. the latest annual report from the company website, previous annual reports, related financial news to company prospects posted on ASX or other financial news outlets, historical data analysis on past financial statements using data from databases, macroeconomic information related to the company’s business environment and industry, socioeconomic information, and more. Please ensure that all sources used are referenced appropriately.
• You can choose any forecast horizon and any terminal year but will be required to justify your choice using
• You can choose any value for terminal growth but will once again be required to justify your choice using evidence.

Assessment criteria

There is no one correct answer and you are not assessed on the accuracy of the valuation. You are assessed on your ability to:

• Apply the residual income valuation model
• Identify and justify key factors that drive equity pricing within the context of the company that you have been assigned 
• Analyse relevant quantitative and qualitative data, including financials, news, industry and economy data, historical financial data, and annual report
• Provide convincing, evidence-based argumentation for justifying the inputs to the valuation
• Explain the limitations of the analysis and the sensitivity of key
• Provide a quality professional report with supporting documentation (e.g. tables, graphs, references)

Please ensure that each component of the marking criteria is addressed as this will be applied for grading of the assessment.

Assessment task

Marking criteria

Marks

Task 1

Demonstrate solid understanding of the industry, and the company’s business fundamentals. Identify and discuss key drivers of the company’s current position and performance using data analysis and qualitative judgment.

12

Task 2

Accuracy and correctness in the reformulation. Appropriate and clear presentation to enable the auditing of the reformulation.

4

Task 3

Presentation of convincing evidence-based arguments, and application of financial ratio analysis and qualitative analysis that informs the projection (e.g., revenue, expenses, assets, liabilities).

10

Task 4

Analysis of creditworthiness

6

Task 5

Critical discussion of the limitations of your analysis and assumptions (not of the theory or model) and carry through reasonable sensitivity analysis of the limitations and key assumptions that drive the valuation.

3

Task 6

Produce a quality professional report including the effective use of tables and graphs. References are properly cited, report is well formatted, and there is professional use of language and non-superfluous arguments.

5