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Accounting Analysis Statement for Technology One ltd

Perform a firm analysis for Technology One Limited using relative valuation method and residual income valuation method. The report should be 3 pages long.

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Added on  2023-06-11

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This assignment conducts a relative analysis for Technology One ltd and applies residual income method to calculate discounted cash flows of the business which are to be forecasted for the business. The relevance of the discounted cash flow is that it helps the business to effectively estimate the future earnings which the business can anticipate from the business. The discounted cash flow is useful for the purpose of estimating the growth of the business.

Accounting Analysis Statement for Technology One ltd

Perform a firm analysis for Technology One Limited using relative valuation method and residual income valuation method. The report should be 3 pages long.

   Added on 2023-06-11

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Running head: ACCOIUNTING ANALYSIS STATEMENT
Accounting Analysis Statement
Name of the Student:
Name of the University:
Author’s Note:
Accounting Analysis Statement for Technology One ltd_1
1
ACCOIUNTING ANALYSIS STATEMENT
Table of Contents
Introduction......................................................................................................................................2
Relative valuation............................................................................................................................2
Assumptions....................................................................................................................................5
Residual Earnings Method...............................................................................................................6
Reference.........................................................................................................................................7
Accounting Analysis Statement for Technology One ltd_2
2
ACCOIUNTING ANALYSIS STATEMENT
Introduction
The main purpose of this assignment is to conduct a relative analysis for Technology One
ltd. The assessment will also be applying residual income method to calculate discounted cash
flows of the business which are to be forecasted for the business. Technology One ltd is engaged
in the business of providing software systems in Australia. The company is engaged in the
process of buying, selling, marketing of the products of the company. The company is regarded
as one of the leading developers of software system in Australia which is used widely in
Australia.
Relative valuation
Relative Valuation may be defined as the process of comparing the value of the price of
the asset which the business possesses with the market value of similar assets of the business
(Nissim 2013). The technique is used for the purpose of comparison between the valuation of the
business to that of its competitors. The computations of the discounted cash flows and the
valuation of the business is shown below:
Accounting Analysis Statement for Technology One ltd_3

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