Financial statement analysis project
This project consists of 2 questions. Each requires students to create a football field chart and
possibly
... [Show More] provide some discussion (depending on the desired grade) of the market comps
analysis used to create the chart.
See above for grading information on the project.
Submissions
This project involves a fairly large number of submissions. Each question involves 1 Excel file, 1
PowerPoint file, and 1 Word file. Therefore, each submission will include 6 files. To help keep
things organized, the instructions include 1) submitting all required files and 2) including the
terms “question 1” and “question 2” in the names of the files that correspond to the associated
question.
Question 1
Important academic integrity note
Students may not work together on this question. All help and assistance should be obtained
from course materials or Dr. Pilloff.
Overview
Create a football field chart based on the information provided in the table.
Estimated price for Santa Lucia Tech as of 1/31/21 based on various percentiles of peer multiples
EV/EBITDA EV/EBIT EV/Revenue P/E P/B
Estimated price for Santa
Lucia Tech based on the 25 th
percentile of peer multiples
$52.34 $66.99 $47.70 $83.66 $15.54
Estimated price for Santa
Lucia Tech based on the 75 th
percentile of peer multiples
$71.37 $84.23 $79.63 $94.21 $66.37
The share price of Santa Lucia Tech was $76.76 as of the valuation date, 1/31/21
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):
14
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]