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Accounting and Finance( stock analysis) Essay Example
- Category:Finance & Accounting
- Document type:Case Study
- Level:Undergraduate
- Page:1
- Words:385
Case study 1
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Date of Last Price |
13/04/17 |
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Last Price (AUD) |
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Shares Outstanding (M) |
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Market Cap (B AUD) |
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Earnings Per Share (AUD) (TTM) |
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Current P/E Ratio (TTM) |
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Dividend (AUD) (TTM) |
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Current Dividend Yield (%) |
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Definition/Explanation |
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Last Price |
The latest price of a stock |
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Bid Price |
The price that a buyer/investor is willing to pay |
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Ask Price |
The price that the company is willing to accept |
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Shares Outstanding |
The total number of a company’s shareholders |
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Market Capitalisation |
The total market value of a company’s outstanding shares |
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A measure of how volatile a portfolio is compared to the overall market |
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Earnings Per Share (TTM) |
A portion of the company’s profit allotted to each outstanding share |
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Current P/E Ratio (TTM) |
A measure of the market share price relative to the earnings per share |
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Dividend Per Share (TTM) |
Amount paid to investors for each stock owned |
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Current Dividend Yield (%) |
The amount paid out by a company in form of dividends in a year relative to the share market price |
Case study 2
HPR = (PE – PB + D) / PB
2010 HPR = (5.91 – 4.00 + 0.28) / 4.00 = 54.75%
2011HPR = (6.47 – 5.91 + 0.33) / 5.91 = 15.06%
2012HPR = (9.48 – 6.47 + 0.36) / 6.47 = 52.09%
2013HPR = (10.51 – 9.48 + 0.4) / 9.48 = 15.08%
2014HPR = (10.56 – 10.51 + 0.41) / 10.51 = 4.38%
2015HPR = (15.46 – 10.56 + 0.41) / 10.56 = 50.28%
Expected Return = Sum of Returns / Time
ARB Expected Return = (54.75 + 15.06 + 52.09 + 15.08 + 4.38 + 50.28) / 6
ARB Expected Return = 31.94%
Risk = Standard deviation
Variance = ((54.75-31.94)^2 + (15.06-31.94)^2 + (52.09-31.94)^2 + (15.08-)^2 + (4.38-31.94)^2 + (50.28-31.94)^2) / 6 = 433.33
Risk = Standard deviation = 20.81
= 32.11%
Case study 3
= 1.05
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2009/2010
2014/2015
Net Profit Margin
Asset Turnover Ratio
Leverage Ratio
Net Debt to Equity Ratio
Return on Equity
The additional $50 million loan would increase the debt component. Therefore, the 2014/15 Return on Equity and the Net Debt to Equity Ratios would be higher.
The additional $50 million sale of new shares to the public would increase the equity component. Therefore, the 2014/15 Return on Equity and the Net Debt to Equity Ratios would be lower.