Question 2
Create a football field chart based on information obtained from NetAdvantage for a publicly-
traded company headquartered in the United
... [Show More] States. For the selected company, the following
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financial measures must all be positive on the NetAdvantage data obtained for the valuation
date: EBITDA, EBIT, revenue, earnings per share, and book value of equity per share. If any of
these 5 measures are negative, the firm cannot be used for this question. The relevant
valuation date for this project is 2/12/2021. The firm can’t be W.W. Grainger. The firm can be
the one used for the financial statement analysis project if it meets all the required conditions.
The firm must have at least 5 “qualified” peers listed with NetAdvantage. A firm is considered a
qualified peer if it is 1) traded on the NYSE or NASDAQ and 2) it has a positive value for at least
one of the 5 multiples being evaluated (EV/EBITDA, EV/EBIT, EV/Revenue, P/E, and P/B).
NetAdvantage notes which, if any, exchange a firm’s stock is traded on, so identifying the
NYSE/NASDAQ condition is straightforward.
In addition to having at least 5 qualified peers in total, each of the 5 multiples being evaluated
(EV/EBITDA, EV/EBIT, EV/Revenue, P/E, and P/B) must be positive for at least 3 peers (note: the
3 “positive” peers can be different for different multiples).
The ranges in the chart should be based on prices implied by the first and third quartiles of
EV/EBITDA, EV/EBIT, EV/Revenue, P/E, and P/B for the firm’s peer group, as defined by
NetAdvantage. Nonpositive multiples for peers should be handled as covered in class materials.
Students should first create a chart in Excel and then copy & paste it into PowerPoint, where it
should be formatted to look professional, satisfy all requirements laid out in the instructions,
and be consistent with the approach covered in class videos, overheads, and other materials.
Part of looking professional is that the chart should take up most of the slide. It should include
the following 7 elements (which may spill over onto the next page):
1) A value or category for each tick or item on the X-axis (in other words, the “name” of
each multiple under each bar – EV/EBITDA, EV/EBIT, etc.)
2) A value or category for each tick or item on the Y-axis (in other words, various dollar values)
3) Five bars with the same color fill to reflect the implied price ranges for each multiple
4) Five bars with the values used to create them displayed immediately above and below them
5) A dotted line showing the price of the stock as of the valuation date
6) A note, preferably by the dotted line, indicating the price of the stock as of the valuation date
7) A title for the chart [Show Less]