or this first milestone, you will submit a portfolio analysis template and a brief paper outlining the securities and bonds that the XYZ Tech Company might possibly invest in to create a well-diversified investment portfolio. You will analyze each company and its performance in the financial markets over the past five years, include a company valuation for each firm, and identify stakeholders in the company.
Using the investment parameters for XYZ Tech Company along with your own financial database research, you will fill in the portfolio analysis template (attached excel spreadsheet) and write a 3-page paper outlining the securities that your company will invest in to create a well-diversified investment portfolio. You will analyze each company and its performance in the financial markets over the past five years, include a company valuation for each firm, and identify stakeholders in the company.
Using the portfolio analysis template, provide the specified data to explain the company’s growth period (revenues, earnings market share, etc.).
Finally, in a 2- to 3-page paper, discuss the five-year history of each company by visiting the respective websites and databases covering the firm and industry. The paper should briefly discuss the products and services produced by each company that were major contributors to the company’s success. It should also discuss each company’s strengths given the competitive nature of the industry. Based on the financial items and key ratios of the company that you have researched, include a brief discussion of the company’s valuation. (Hint: The Key Ratios on the Morningstar website list competition and industry ratios and could be downloaded directly into Excel for easier comparison.) You should also identify the key stakeholders, particularly common stakeholders, in the company.
Specifically, you must address the following critical elements:
I. Company and Market Analysis: In this section, you will analyze the company and its position in the financial markets.
A. Financial Markets
i. Analyze the five-year performance of the domestic economy relative to the financial markets (using the portfolio analysis template).
ii. Explain specific market performance data based on compiled asset valuation model inputs supported by database research of five-year
sector and industry performance and current trends.
iii. Evaluate the impact of the five-year and current macroeconomic data on asset prices.
B. Company Valuation
i. Analyze the company’s financial items and key ratios for a comparison to peers and industry (using the portfolio analysis template).
ii. Determine the intrinsic value of assets by inputting data into the various asset valuation models.
D. Stakeholders
i. Identify five key stakeholders and their needs in relation to the company’s portfolio.
ii. Identify the common stockholders’ primary objective and their required return on equity.