SACM - United Kingdom
Permanent URI for this collectionhttps://drepo.sdl.edu.sa/handle/20.500.14154/9667
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Item Restricted The Impact of Political Events on Stock Prices(Imperial College London, 2023) Alshehayeb, Razan; Sefton, JamesWhile various factors influence stock prices, the impact of political factors on stock prices is the main focus of this paper. We closely analyze the stock price of a specific company, which we believe is significantly influenced by political events. To achieve this, we conduct valuation exercises on six different dates, coinciding with the end of each fiscal year from 2018 through 2023, using the discounted cash flow method and trading comparables. Our goal is to compare the intrinsic share price of the company with its market price over the past six years, shedding light on the main political factors that could be responsible for any differences. As for our choice of company, we have selected Alibaba - a Chinese multinational organization with a stock listing in the U.S. market. Our selection for this specific company was based on our belief that its share price is significantly undervalued, and has been for a notable time, although this is attributable to various factors, such as the increased competition from tech giants, we believe it is in large part due to political factors.9 0Item Restricted Exploring the Intrinsic Valuation of Cisco: Strategic Reasoning for Informed Decision Making(Queen Mary University of London, 2023) AlNahdi, Ghaith; Koutroumpis, PanagiotisThis dissertation evaluates Cisco Systems Inc., a leading global technology company, to determine its intrinsic value and provide investment recommendations—buy, hold, or sell. Utilizing 2022 financial data and assuming an analysis date of January 1, 2023, the study employs Discounted Cash Flow (DCF) and relative valuation methods to establish a comprehensive valuation. A detailed review of valuation methodologies highlights the advantages and limitations of each, with DCF emphasized for its robustness in isolating intrinsic value, albeit with challenges in cash flow forecasting and terminal growth assumptions. Relative valuation is also explored for its efficiency, though the identification of comparable companies poses significant hurdles. The analysis incorporates an in-depth examination of Cisco’s business model to identify suitable industry peers, ensuring relevance in the relative valuation process. By integrating both approaches, this paper aims to deliver a well-rounded perspective on Cisco’s financial health and future potential, aiding investors in making informed decisions.9 0Item Restricted The Swatch Group Valuation report (Dissertation)(Queen Mary University of london, 2023-12-16) Alhelali, Ahmed; Larcher, LucaThis is a comprehensive valuation report on the Swatch Group Ltd. A predominant company in the watchmaking and jewelry industry that specializes in luxury and mid-range watches, the Swiss company has been in business since 1983 and has a presence worldwide. In this report the company will be evaluated for an investment decision on whether to buy or sell depending on the value of the stock in the next five years, through the forecasted value of the company, this value will be calculated using valuation techniques that use financial reporting available to investors. For evaluating the swatch group and after researching the company and exploring its historical financial data, the use of the discounted cash flow (DCF) model is chosen to evaluate the present value of the company which gives us an insight into weather the company can generate profits for an investment or not, the investment decision on whether to buy or sell the company will be supported by the DCF model, a sensitivity analysis which gives us more alternate scenarios on the present value of the company based on the cost of capital and the growth rate, the relative valuation of the company which compares certain ratios with other similar companies of similar financial metrics and work in the same industry. Right now, the group is publicly traded on the Swiss stock exchange at a share price of 235.40 Swiss francs (CHF) as of September 29, 2023, and evaluating the company gives us a share price of 259.62 CHF with a 10% premium to the current share price, with that the recommendation is to buy the shares or add more shares to an existing portfolio.15 0Item Restricted Telefonica Investment Recommendation(Queen Mary University of London, 2023-10-23) Alsuhaibani, Ibrahim; Faria, GoncaloThis dissertation aimed to conduct an equity valuation report on Telefonica, a Spanish based leading telecommunication operator. This was done by utilizing the discounted cash flow model, an intrinsic valuation method, to forecast Telefonica’s cash flows for the next 10 years until 2033, and then discount them back to the present value through the use of a weighted average cost of capital of 6.32% and growth of 3%. The DCF model indicated that Telefonica’s stock is undervalued by 33% when compared to Telefonica’s share price as of 30/06/2023, which amounted to 3.72 EUR. Additionally, relative valuation was also carried out through the use of three multiples: Price/Earnings, Price/Book, and Enterprise Value / Earnings before interest, tax, depreciation, and amortization. The results further supported our DCF findings, in which the use of both the P/E and P/B multiples resulted in Telefonica being undervalued. Moreover, sensitivity analysis of the enterprise value and the target price was conducted. Overall, the report finds that Telefonica is undervalued. Thus, the investment recommendation is BUY.16 0