Financial Analysis and Valuation1

7/30/2019 Financial Analysis and Valuation1

1/37

Financial analysis and valuationInformation sources

20/4-2010

[email protected]

BBA


2/37

Information sources today

The case of Givaudan S.A.

..both from the Library at BI

..sources on the web and beyond

http://en.wikipedia.org/wiki/Company_valuation


3/37

Enterprise valuation - informationsources

The critical success factors is to have extensive knowledge of

the company enterprise and industry

In what industry is the company?

More than one industry?

Business valuation

Nytveit, Trond Stian. 2007. Verdsettelse : en studie av Norsk Hydro. URI: http://hdl.handle.net/2330/1600 . MasterThesis NORGES HANDELSHYSKOLE
http://hdl.handle.net/2330/1600http://bora.nhh.no:8080/handle/2330/19http://bora.nhh.no:8080/handle/2330/19http://bora.nhh.no:8080/handle/2330/19http://bora.nhh.no:8080/handle/2330/19http://hdl.handle.net/2330/1600


4/37

You need to understand the company or asset

What drives the value behind that

Financial statements

Audited statements Tax returns

Press releases

Understand how the market is looking at the company,

products or brand Shareholders agreements

Business plans

History, developments, M&A


5/37

Company Valuation - definitions

In finance, valuation is the process of estimating the potential

market value of a financial asset or liability. Valuations can be

done on assets (for example, investments in marketable

securities such as stocks, options, business enterprises, orintangible assets such as patents and trademarks) or on

liabilities (e.g., Bonds issued by a company).

Valuations are required in many contexts including investment

analysis, capital budgeting, merger and acquisitiontransactions, financial reporting, taxable events to determine

the proper tax liability, and in litigation.



6/37

Business Enterprise - Valuation

information

The market value is determined by multiplying the quoted share price of

the company by the number of shares.

Valuation approach is the general way which is followed to determine a

value indication of a business, corporate ownership interest, security, orintangible asset.

Business Valuation is an estimation of the market value of a corporation /

business. It differs from appraisal in the sense that appraisals only takes

into consideraton the tangible assets, but a valuation considers intangible

assets.


7/37

Company valuation definition

A way of judging the performance of a business as compared

to others in the same line. Financial studies are conducted

whereby comparative benchmarking is done for this purpose.

Through these industry insights, the value of a business canalso be assessed.

Business Valuation terms / how much is my business worth


8/37

The Givaudan company

..is it in good health?

Several information seeking tasks ahead if youre going to find

out



9/37

Company overview - homepage

Consists of?

Tangibles or intangibles?

Google for website ..any hard facts there?

What are sales talk and what are the breakdown facts?

Annual report?

The latest Quarterly?

Anything else you should look for?

Investor Relations

Youre the auditors and are personally responsible!

http://www.givaudan.com/givcom/


10/37

The company analysis - homepage

What are their business ideas?

What do they sell exactly

Goals, strategies ?

What is all the talk of sustainability? Any thoughts? Whats all that about?

Do the Swiss have a good record on corporate social responsibility?

Do the company have any famous brands any value there?

Market value as in reputation?

Goodwill?

Wikipedia?



11/37

Are they listed or unlisted / public of

private?

Stock prices gives you market confidence and expectations

How can you find out?


12/37

Google finance for latest stock prices

Check Google Finance- http://www.google.com/finance

Do a search on Givaudan SA

Note down the stock symbol/ticker

Todays stock price compared to homepage? Any surprises?

Negative development?

Compare info with company website info

Any surprising news?

The segments how to valuate the different segments of thecorporation? All in the same industry?

Yahoo Finance - http://finance.yahoo.com/

http://www.google.com/financehttp://finance.yahoo.com/http://finance.yahoo.com/http://www.google.com/finance


13/37

Yahoo Finance - http://finance.yahoo.com/ Do a search for the company will get you

what info?

http://finance.yahoo.com/q?s=GVDNY.PK

GIVAUDAN SA (GVDNY=US) 2-weeksforecastPechala's Reports(Apr 9)
http://finance.yahoo.com/http://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/q?s=GVDNY.PKhttp://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/


14/37

Did they succeed in 2009?

How are they doing, really?

How can you tell?

Any explanations of the results from the latest quarterly? Financial statements newer than the latest Quarterly?

..for latest developments and trends

Does homepage give you all you need?



15/37

Competition

Screen competitor - International Flavors & Fragrances Inc.

Google them for home page

Compare with Givaudan home page for first impression

Check them out in Google Finance too.

Note down ticker symbol



16/37

FACTIVAa source brought to you by the BILibrary

Not on the free web

Check Factiva for company analysis

Search this way

Find the tab - Companies & Markets

-> Company

- > Company name Givaudan SA

The BI Library -> Databases -> Factivca


17/37

Factiva charting

Compare with International Flavors & Fragrances Inc.

Differences in stock price?

Size

Number of employees

Development

Company strategy

Segments etc.


18/37

Stock prices

Factiva - history & valuation - market valuation

Portfolio risk & return

Stock prices and variances


19/37


20/37

IFF


21/37


22/37

Givaudan AG IFF


23/37

Givaudan AG IFF


24/37

Factiva charting


25/37

Factiva charting


26/37

Factiva charting


27/37

Factiva Comparison


28/37

Industry/Market value?

Industryhow is the company doing in its industry?

How is the industry doing?

Market share and volume How is the market doing?

Growth in demand?

Impediments to growth?

Trend indicators? Identifying a trend? Consumer demographics? Any changes?

Business Source Complete for industry profile


29/37

Industry overview

What kind of industry is the Fragrance and Flavour industry?

Exposure to risk?

Dependent on overall volatile economic conditions?

How is the overall world market doing where can you find info?

EUROSTAT

http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home

Swiss Stock Exchange

http://www.six-swiss-exchange.com/index.html - find Givaudan SA here

How is the rest of the stock market doing

Find out about riskswheres the companys largest markets?

Hows these regions doing macroeconomically?

What about interest rates? On the rise or stable?
http://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.html


30/37

Industry forecasts & overview


31/37

Company & Industry overview

Check Factiva for a news search of the company or industry

might be some stock reports who analyzes the company financials and recent news


32/37

Company Strategy

Find out about their strategy

Find a competitor and benchmark strategy

Youre to look for any diverging major differences

Do the competitor have a different, smarter strategy? Should your company be doing likewise?

Your evaluation? Good, sound strategic choices?



33/37

Amadeus - financial statements and more

Amadeus - for large western companies bakwards for 10

years

M&A

Financials

Graphs

Subsidiaries, se graph for this

company structure and segments

Business Source Complete for large companies, industryreports, market reports, SWOT analyses


34/37

BUSINESS SOURCE COMPLETE

For company news

For industry profiles


35/37

Media coverage

News

Older articles any scandals lately?

Social media? Whats brewing?

Consumer attitudes

Company reputation


36/37

Social media

http://boardreader.com/ - tracks Discussion Forums, Search message

boards and forums

LinkedIn.com see Givaudan - Company Profile on LinkedIn

see news & who works where & contact people

http://www.blogsearch.google.com could be useful for official &

unofficial news but be careful with your sources must be trustworthy!
http://boardreader.com/http://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.blogsearch.google.com/http://www.blogsearch.google.com/http://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://boardreader.com/


37/37

Free sources on the web?

Most of them are commercial

The Library web pages -> Database list

supplies you with most of what you need

Happy searching!

Financial Analysis and Valuation1

Documents

Transcript of Financial Analysis and Valuation1