FIN3CSF Case Studies In Finance - Firm Valuation And Analyst Recommendation - Case Study Assignment Help

CASE STUDIES IN FINANCE (FIN3CSF) – SEMESTER 1, 2022

CASE STUDY 3: FIRM VALUATION AND ANALYST RECOMMENDATION

You work as a research analyst as part of the relatively small analyst team at Wilson Asset Management (WAM). Wilson Asset Management is the manager of a range of leading listed investment companies (LICs) trading on the Australian Securities Exchange which focus predominantly on pooled investment in Australian companies but also some which offer international market investment exposure. These LICs include WAM Capital, WAM Active, WAM Research, WAM Leaders, WAM Microcap, WAM Global, WAM Alternative Assets and WAM Strategic Value. Wilson Asset Management also has close links with the philanthropic-focused Future Generation Australia and Future Generation Global LICs which were founded by Geoff Wilson, the Chairman and Chief Investment Officer of Wilson Asset Management. During the COVID-19 pandemic Wilson Asset Management introduced an online series of investment seminars on various topics of perceived interest to WAM shareholders known as the ‘WAM Vault’. Your analyst team has just been informed that WAM will be commencing in-person WAM Vault presentations title ‘WAM Vault Live’ with the first event scheduled in Melbourne on May 27^th 2022. The plan for this WAM Vault Live event will be focusing on Investment Themes and particularly in terms of Industry Dynamics, Change and Future Opportunities. As part of the planning for the upcoming May 27^th 2022 event, Geoff Wilson has asked each analyst team to prepare the following for screening as part of the Investment Theme Showcase component of the WAM Vault Live event:

• Individual visual and audio recorded presentations by each analyst team member on one company from a selected investment theme being highlighted at the
• An analyst group visual and audio recorded presentation providing a current and forward- looking analysis and review of the investment theme area and a preferred company recommendation among the identified companies representing the focus of the individual analyst

The individual analyst presentation should be a maximum of 15 minutes duration and the combined analyst team presentation should be a maximum of 15 minutes duration for the overall analyst team. The presentation content should include both presentation slides or similar visual material and an associated verbal presentation. The contents of the individual analyst company presentations should be focused on a near-term investment perspective and potentially include:

• A description of the company background and activities
• The nature and position of the company within its industry sector and any specific drivers and competitive advantages associated with its business activities
• Current economic and market events impacting on the company
• A summary of the recent performance of the company and forward-looking projections
• An intrinsic valuation of the company’s shares at the current point in time and provision of a valuation conclusion
• An overall conclusion about the company as a potential investment option.

The combined analyst team presentation should provide a detailed assessment of the investment theme area focusing on underlying characteristics and industry relevance, structural or technological dynamics, lifecycle and growth considerations, external influences or determinants, and suitability to the current and future market environment and, based on this assessment, a justified recommendation of the preferred company out of those analysed by the analyst team.

The investment theme and company allocations will be based on the group selection tool to be used to form analyst teams.

Required:

The individual analyst and analyst team recorded presentations are due to be submitted to the WAM Chief Investment Officer, Mr Geoff Wilson AO, by 11.59pm on Monday 9th May 2022, via file upload to the FIN3CSF subject LMS site. This case study contributes 25% to the overall final assessment in the FIN3CSF subject, with the individual student presentation comprising 15% and the group student presentation comprising 10% of this overall 25% assessment allocation. Both individual and group presentations should be a maximum of 15 minutes in duration, equating to an overall equivalent word limit of 1,000 words per student. Analyst team groups are to comprise of either 3 or 4 people (preferably 4 people), no more and no less, and teams can be self-determined and registered using the Group Selection tool provided in the Case Study 3 block on the subject LMS site.