Banking Assignment Report: First Abu Dhabi Bank Analysis

This report presents an analysis of the First Abu Dhabi Bank, focusing on its stock pricing using financial data from 2007 to 2017. The report employs two primary valuation methods: the Infinite Growth Model and the 20-Year Growth Model, to determine the stock's price. It calculates the cost of equity and considers factors like growth rate and market risk. Sensitivity analysis is conducted to assess the impact of changes in the cost of equity and growth rates on the stock price. The analysis includes detailed financial statement extracts, including the income statement and balance sheet, to support the calculations and findings. The report concludes by comparing the stock prices derived from both methods and offering insights into the investment potential of the bank's shares, with recommendations based on the analysis of the sensitivity scenarios.