The Task: You are required to use publicly available information, including the usage of Refinitiv Eikon , to analyse a publicly listed company. The aim is to prepare a report which provides an...

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Executive Summary
Accent Group Limited (AX1.AX) was founded in 1981 at Victoria A ustralia , it was listed on the Australian Security Exchange in 23 Feb 2004. Today, Accent is well renowed brand in the footwear industry in Australia and New-Zealand. Their main operations include retail of footwear and chain of operations.
The financial analysis has shown that Accent performance over the 5 year period (2015-2020).
The key Personnel whoch heads he company include the follows:-
    Position Type
    Salutation
    Initials
    Full Name
    Title
    
    Chairman
    Mr
    D
    David Gordon
    Non-Executive Chairman  *
    
    Chief Executive
    Mr
    D J
    Daniel Agostinelli
    Chief Executive Officer  *
    
    Financial Controller
    Mr
    M
    Matthew Durbin
    Group Chief Financial Officer
(Accent Group Australia Limited (AX1),2021)
The valuation analysis consisted of the application of five models, namely: Dividend Discount Model, Free cash flow model, Price earnings ratio, Price over book value ratio and Net tangible as set backing model. We found that the latter model was more appropriate for this situation although the outcomes were similar. Overall, our findings have shown that Accent stock will be undervalued or over valued.
Contents
Executive Summary    2
1.Company Analysis    4
1.1Overview    4
1.2History    4
1.3 Share Performance    5
1.4 Products    5
2. Financial Analysis    6
2.2 Dupont Analysis    7
2.2.1 EBIT/Sales    8
2.2.2 Sales/Total Assets    9
2.2.3 EBIT/Total Assets    9
2.2.4 Interest Expense/Total Asset    10
2.2.5 Net Before Tax/Total Assets    10
2.2.6 Total Assets/Common Equity    11
2.2.7 Net Before Tax/Common Equity    12
2.2.8 Tax Retention    12
2.2.9 Return on Equity (ROE)    12
3.The Economic Environment    13
3.1 Overview    13
3.2 Competitive Environment    13
3.3 Operational Analysis    14
4 .Valuation Assumptions    15
Risk-free rate(Rf)    15
Market returns(Rm)    15
Market risk premium (Rm-Rf)    15
Beta (β)    15
Required Rate of Return (CAPM) Calculation:    16
4.2    Valuation Analysis    16
4.2.1 Dividend Discount Model (DDM)    16
4.2.2 Dividend Forecast    17
4.2.3Intrinsic Share Price    19
4.2.4Sensitivity Analysis    20
Intrinsic    20
4.3Free cash Flow to Equity Model    22
4.3.1Cash Flow Forecast    23
4.3.2Sensitivity Analysis    24
4.4Price earnings ratio    24
4.4.1 Price/Book Value ratio (P/B)    27
5.Evaluation of value/price of the company    27
6.References    30
1.Company Analysis
1.1Overview
The company is a leading Australasian company competing in the Footwear retail industry. Their headquarters are based in Raymond Victoria and they have stores Majorily in Australia and New Zealandand have a ranked number 553 out of the top 2000 companies in Australia. The company gave a profit of around $ 831056000 and have around employee totaling 5199.     
1.2History
The company is known by name of the RCG Corporation Limited , it has operation of footwear chains and retail businesses and manages the offices from Waterloo, New South Wales. The company history can be explained by various milestones as listed in financial year
2017 – Change of company name
2016 – Acqusition of HYPE DC
2015 – Acqusition of Accent Group Limited
2008 -201 3 – Floating new and improved version of goods and articles
2006- 2008 - Known for buying various franchises
2004 - Public Trading and incorporation of the ASX         
1.3 Share Performance
It is crucial to understand that the share performance of the company is explained as possible in terms with the following chart :
The stock Analysis will be done which shows the journey of more than 10 years, things predict that the share price has gone up by more than thirty percent in past one year . the other important part is that the AX1 is not significantly volatile as compared to the rest of stocks in the Australian stocks exchange especially on a analysis of over the past 3 months, typically moving +/- 6% a week. Hence, showing that the share is being very stable in a majority run.    
1.4 Products     
Accent Group Limited successfully operates 420 stores across Australia and New Zealand.
Stores are grouped as follows:
1. The Athlete's Foot - Athletic footwear
2. Hype DC - Premium sneakers
3. Platypus - Multi-branded sneakers
4. Podium Sports - Athletic footwear and apparel at outlets
Brands are listed as follows:
1. Sketchers
2. Merrell
3. CAT
4. Vans
5. Dr Martens
6. Saucony
7. Timberlands
8. Sperry Top-Sider
9. Palladium
10. Stance
2. Financial Analysis
Below are the financial statements and 5 year company analysis which has been prepared the purposes of Accent company valuation which maybe in connection with the financial statements
    
Source: Morningstar Data Analysis 2021
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The chart shows the graph presentation as to how the growth has undertaken in past five years considering that the 2016 is a base year:
It is evident that the major highlights are the total changes are on account of the revenue change which a positive outbreak in the financial year 2017 and the other part is even thought the depreciation increased by around 300 percent the accompany has shown a profit of 4 % in the financial year 2020.
2.2 Dupont Analysis
The other point of analysis is the DuPont which evaluate the Accent under two major pointers one being the ROE and the return on equity. In this model mainly , it is broken into three major parts- pertaining to the profit margin, total asset turnover and financial leverage. The formula can be defined as follows:-
Five-Step DuPont
The five-step, or extended, DuPont equation breaks down
    ROE = SEBT ​ ×AS​×EA​×(1−TR)
    Years
    2020
    2019
    2018
    2017
    2016
     Reporting Currency
     AUD
     AUD
     AUD
     AUD
     AUD
     Total Revenue
     $ 8,31,056.00
     $ 7,96,848.00
     $ 7,03,183.00
     $ 6,36,167.00
     $ 4,42,914.00
     Interest
     $ 14,445.00
     $ 3,565.00
     $ 3,777.00
     $ 3,069.00
     $ 2,568.00
     EBIT
     $ 94,773.00
     $ 80,585.00
     $ 64,695.00
     $ 44,493.00
     $ 45,450.00
     NBT
     $ 80,328.00
     $ 77,020.00
     $ 60,918.00
     $ 41,424.00
     $ 42,882.00
     Income Tax Expense
     $ 24,646.00
     $ 23,134.00
     $ 16,918.00
     $ 12,072.00
     $ 12,699.00
     NPAT
     $ 55,682.00
     $ 53,869.00
     $ 43,957.00
     $ 29,157.00
     $ 29,924.00
     Total Assets
     $ 9,56,235.00
     $ 6,56,053.00
     $ 6,05,761.00
     $ 6,23,104.00
     $ 4,51,325.00
     Share Capital
     $ 3,90,926.00
     $ 3,91,338.00
     $ 3,91,896.00
     $ 3,92,747.00
     $ 3,28,897.00
     Total Equity
     $ 4,09,210.00
     $ 4,03,337.00
     $ 3,91,913.00
     $ 3,70,652.00
     $ 3,06,287.00
     Dividends
     $ 48,761.00
     $ 44,653.00
     $ 32,538.00
     $ 32,478.00
     $ 23,513.00
    Common Shares
    541866715
    541241224
    535751224
    532789559
    490304120
    EBIT/Sales - A
    11.40%
    10.11%
    9.20%
    6.99%
    10.26%
    Sales/Total Assets -B
    86.91%
    121.46%
    116.08%
    102.10%
    98.14%
    EBIT/Total Assets -C
    9.91%
    12.28%
    10.68%
    7.14%
    10.07%
    Interest Expense/Total Asset -D
    1.51%
    0.54%
    0.62%
    0.49%
    0.57%
    Net Before Tax/Total Assets -E
    8.40%
    11.74%
    10.06%
    6.65%
    9.50%
    Total Assets/Common Equity -F
    0.176%
    0.121%
    0.113%
    0.117%
    0.092%
    Net Before Tax/Common Equity-G
    20%
    19%
    16%
    11%
    14%
    Tax Retention = ( 1 - (dividends declared/operating income after tax)-H
    12%
    17%
    26%
    -11%
    21%
    Return on Equity (Net Income / Shareholders Equity ) -I
    14%
    13%
    11%
    8%
    10%
    DU Point Analysis = A*B*F*70%
    0.000122431
    0.000104222
    8.4529E-05
    5.84567E-05
    6.48883E-05
5 Year Extended DuPont Analysis
It tries to show how the figures relate to profit and loss will actually impact on the Below, the five components which make up the extended DuPont system/model are detailed.
It is essential to understand that the these figures deal with the items broadly being of the profits and the sales and the assets along with the equity and the shares.
2.2.1 EBIT/Sales        
    Illustrates the organization profitability. It is Computed by arriving at earning before deducting interest and tax dividing it by net sales. The Graph clearly shows that the profit margin is increasing in last three years.        
2.2.2 Sales/Total Assets
    
Illustrates the organization profitability in connection with the assets. It is Computed by net sales which is divided by the total assets of the current year . The Graph clearly shows that the profit margin is increasing in last three years but seen a high level dip in the financial year 2020.        
2.2.3 EBIT/Total Assets
Illustrates the organization profitability in connection with the assets. It is Computed by arriving at earning before deducting interest and tax dividing it by total assets of the current year . The Graph clearly shows that the profit margin is increasing in last two years but seen a high level dip in the financial year 2020.    
2.2.4 Interest Expense/Total Asset
This ratio analysis computes the rate of interest expense of the company and how will it be able to pay debt which is servicing or has outstanding.
2.2.5 Net Before Tax/Total Assets
Illustrates the organization profitability in connection with the assets. It is computed by arriving at earning before deducting tax after deducting assets dividing it by total assets of the current year. The Graph clearly shows that the profit margin is increasing in last two years but seen a high level dip in the financial year 2020.
    
2.2.6 Total Assets/Common Equity
Illustrates the organization ratio will determine the level to which a company has decided to use debt in order to finance its assets. It shows the value has a eventually increased with years.
2.2.7 Net Before Tax/Common Equity
                
    
It illustrates the margin in connection with the fact that the net before tax is divided with the equity holders, it shows that the common equity return value has actually increased in number of years.
2.2.8 Tax Retention
This particular retention ratio computed explains in much detail that the percentage computed is definitely on account to the lesser value as actually the company’s is giving the tax retention to the government. Therefore, it is not promising for that company as they are paying less tax
2.2.9 Return on Equity (ROE)
            
    
It is evident that the ROE measures the amount of net income in terms with the funds that the organization shareholders has or will invest. ROE is expressed as a percentage format as per the given chart the company is definitely providing promising return value.
3.The Economic Environment
3.1 Overview        
This segment will explain the operating contribution done by the company with lieu of the geographical locations and the industries as well as explain the process in connection with the Competitive environment as to how the company has been in relation with the...