2. You can get list of FTSE 350 companies from the London Stock Exchange website.
http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/constituents-indices.html?index=MCX You can get UK industry classification from the following: https://www.gov.uk/government/publications/standard-industrial-classification-of-economic-activities-sic (UK SIC code information) https://fame4.bvdinfo.com/version-20181219/fame/Companies for FAME Database Annual reports are available to download from the company’s website and as a scanned copy from FAME. It is also expected that you will collect information from the narrative section of the annual reports and accounts of companies. Required: You should prepare your report in two parts: (
a) In the first part, you are expected to use ratio analysis to compare the performance and position of a company over the last five years. You are expected to use some industry data and information from various sources to support your analysis. Your report should cover the following areas: • An evaluation of profitability. • An evaluation of financial position from both a short-term (liquidity) and a long-term (gearing) perspective.
• An evaluation of performance from an equity shareholders perspective. • An evaluation of the overall performance and position of the business. (b) In the second part, you are required to prepare a valuation for a company using one of the following two methods: 1. Prospective price-earnings ratio analysis based on forecast normalised earnings. 2. Forecast dividend growth model. You are required to compare your valuation with the actual market value of the company. You should discuss the advantages and disadvantages of the valuation method you have chosen and the problems that may arise in arriving at valuation to illustrate your points.
