The Company to use for this research paper is GILD – Gilead Sciences Inc
Select important ratios for Operating Leverage, Cash Flow, Productivity (Return on…, yield) and Valuation. Use 3-5 years of historical data, calculate or use Morningstar to produce tables of ratios. Calculate descriptive statistics for the ratios – mean, geometric mean, min, max, median, standard deviation. Write a 2-3 page research paper describing the significance of the ratios, any trends, growth indications, strategy decisions that might impact the ratios and a determination of value.
Organize your efficient research and writing process: Research the topic, Outline your paper w/research annotations for key elements, Draft more than you need, Revise to proper length, focus and impact, Finalize for logic consistency, accurate citations, and conclusion.
Use your own spreadsheet or Instructor Model FinancialAnalysisInstrumentation1.xlsx
Apparently Here are the paper segments Paper Segments
1. Brief overview of Thesis, Method(s), summary of findings, relevance to reader [1/4 page]
2. Thesis [1/4 page]
3. Evidence incl. 1 primary chart [3/4 page]
For example (DCF):
A. How did you arrive at the growth rate estimate?
B. What is the 5year avg growth rate from historical data? What is the standard deviation?
C. What elements of the company strategy (from 10K) address the future growth rate and provide support for your conclusion as to what the likely growth rate will be.
D. It appears the final corporate value is mostly driven by post 5-year “Terminal Value/Residual”. What concerns over the accuracy of the valuation does this create?
E. What are some likely reasons the current share price so far above calculated intrinsic value? Different assumptions? What would have to change in the model to get to the current share price?
4. Relevance to the Reader [1/4 page]
5. Conclusion of Value or Thesis [1/2 page]
