Equity Report
Create an equity report on a publicly traded healthcare company through understanding the business model and financials then using the acquired information to forecast fair value for the organization and provide a recommendation.
Include the following sections:
Background of business and operating segments (summary)
Analysis on the most recent reported quarter
Forecast for the next 12-24 months (financial projections should be provided in table format)
Valuation for the stock based on your chosen valuation metric. Acceptable metrics include:
The Dividend Valuation Model (see p. 464-466)
Constant Growth Stock Valuation (see p. 466-472)
Price/Earnings Ratio (p. 711)
Market/Book Ratio (p. 712)
Summary recommendation
In the summary recommendation, you should state where the stock is currently priced and where you believe the fundamental valuation is.
Additionally, you should explain whether you believe the stock should be bought, sold, or held. You can also use an alternative scale which is overweight, underweight, or equal weight.
