Fundamental Concepts of Finance
Added on 2019-10-30
24 Pages5258 Words162 Views
Running Head: Finance 1Project Report: finance
Finance 2Executive Summary Fundamental concepts are the finest concept to recognize the best security in the marketplace and it is moreover helpful to examine the various circumstances and state of the corporation. In this report, diverse techniques of fundamental analysis like bottom up and top down analysis have been studied to recognize and manage the company’s performance, performance of the industry and companies. In this report paper, Australian market and the retail industry has been investigated. In addition, the banking industry has been assessed and finally the company’s performance has been analyzed and the two firms under the Australian retail industry. More, different micro and macro aspects have been investigated for this report. Finally, findings and recommendation has been given.
Finance 3ContentsIntroduction.......................................................................................................................3Industry and company overview.......................................................................................3Top down analysis............................................................................................................3Gross domestic product................................................................................................4Fiscal policies...............................................................................................................5Future projection on Australian stock market..............................................................5Industry Viewpoint.......................................................................................................5Industry data.............................................................................................................6Future Outlook..............................................................................................................6Bottom up analysis...........................................................................................................7DU Pont analysis..........................................................................................................7Wesfarmers...............................................................................................................8Woolworth................................................................................................................9Financial data:.............................................................................................................10Wesfarmers.............................................................................................................10(Morningstar, 2017)................................................................................................12Woolworth..............................................................................................................12Ratio Analysis.............................................................................................................13Wesfarmers.............................................................................................................13Woolworth..............................................................................................................14Summary and Findings...................................................................................................15Recommendation and Conclusion..................................................................................16References.......................................................................................................................17
Finance 4
Finance 5Introduction:Investment is a trending term now days. Everybody wants to invest the saving amountinto the market to manage the fund and enhance the return over the fund. There are two options for the investor to invest into the market one is for short term and other one is for long term. For long term investment, it is required for the investor to analyze the performanceof the company as well as worth of the company in terms of various micro and macro economical factors. It has been analyzed that the fundamental analysis is a good choice to analyze the micro and macro economical factors of the company as well as the industry underwhich the firm operates its business functioning1. Fundamental analysis helps the investors and analysts to identify the worth of the business. In this report, it has been found that the mainly two options are there for conductingthe fundamental analysis which is top down analysis and bottom up analysis. Top down analysis depict about the macro economical factors of an industry such as how the market is performing what are the various factors which could affect the operations of the business etc. whereas the bottom up analysis depict about the micro economical factors of companies such as the worth of the business, performance of the business changes which have taken place into the operations of the company etc. in this research paper, retail industry has been invetsiagted and further, 2 companies which are performing under the Australian retail industry has been chose which are Wesfarmers and Woolworths2.Industry and company overview:1Damodaran, Aswath, (2016), Damodaran on valuation: security analysis for investment andcorporate finance. Vol. 324. John Wiley & Sons.2Cacuci, Dan Gabriel, ed., (2015), Handbook of Nuclear Engineering: Vol. 1: Nuclear Engineering Fundamentals; Vol. 2: Reactor Design; Vol. 3: Reactor Analysis; Vol. 4: Reactors of Generations III and IV; Vol. 5: Fuel Cycles, Decommissioning, Waste Disposal and Safeguards. Vol. 2. Springer Science & Business Media,.
Finance 6Australian market has been analyzed and found that the performance of Australian market has been enhanced from last few years which directly impacted over the Australian retail industry. It has been found that the Australian retail industry falls into top 20 economiesglobally3. Various issues have been faced by this industry but currency, the affect of that issues have been lowered. In addition, Wesfarmers and Woolworths are the top best retail companies in Australian market. Both the companies have registered their business into the Australian stock exchange and both the companies are offering its products and services to the global customers. Top down analysis:Top down analysis is an investigation over various macro factors of a company. In this analysis, numerous factors have been investigated related to the external and internal factor of an industry. This analysis depict the user about the performance of the industry in terms of gross domestic product, inflation rate, fiscal policies of the country company in terms of analyzing the performance of the industry. This part of fundamental analysis is mainly conducted by the analyst and investors to identify the position of the industry in termsof various aspects. Top down analysis is totally opposite to the bottom up analysis. In top down analysis, entire firms of the industry are examined together by the investors and it is identified that how the industry is performing. This study depict that it is required that if the industry is enjoying the growth than firms would also enjoy the growth. This process dependsupon entre industry and the performance of that industry4.For conducting the study of top down analysis, Australian retail industry has been chose. This study has been conducted over Australian retail industry to analyze that how the 3Zhu, Qinghua, Yijie Dou, and Joseph Sarkis. "A portfolio-based analysis for green supplier management using the analytical network process." Supply Chain Management: An International Journal 15, no. 4 (2010): 306-319.4Lim, Sungmook, Kwang Wuk Oh, and Joe Zhu, (2014), "Use of DEA cross-efficiency evaluation in portfolio selection: An application to Korean stock market." European Journal of Operational Research 236, no. 1 :361-368.
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