Stock Price Valuation and Beta Calculation

Genting Berhad is the parent company and holding company that manages investment in others Genting companies around the world. The Headquarters was in Malaysia, and this multinational corporation companies started from humble beginnings in 1965.

Diversification is a basic principle in investing the idea being that since you cannot possibly know beforehand which stocks will perform better or worse than the average, you cannot afford to put all of your money into one company, or even in companies within a single industry. One resorts to diversification to spread the risk -- and opportunity. The average returns are obtained by diversifying.

The firm shows positive health for the Shareholders Equity with an equity ratio of 44.2% in 2011 and increasing to 45.2% in 2012. Calculating the percent of total assets that shareholders would receive in the event of company liquidation looks positive and very healthy for any investors or shareholders of this firm. The interest coverage ratio is also at a value that is significantly positive 14.0% in 2011 and 12.8% in 2012. Although 2021 shows a decrease, the company is still very capable of generating sufficient revenues to cover their interest payments on any debt they have incurred.

The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains

After that, we analyses the company’s financial performance through analyses the recent three years’ annual report from 2013 to 2015. Based the previous steps, we could conduct the evaluation of the company through many comprehensive indexes like WACC and two-stage discounted free cash flow model, we get the stock price by both FCFF and FCFE are $8.06 and $7.44 respectively , compare to the current price of 20 May 2016 is $10.36, and the price is overvalued.

This company experienced an all-time high in March of 2011 when its close price hit an astounding 93.01 but then dropped by nearly 20 three months later when it closed at 76.95 and then 55.44 in September of that same year. They currently hold a return on equity of 9.61% and a return on assets of 5.24%. The industry that this company is in, oil and gas industry, has seen enormous advances in technology and this has helped toward assisting companies in producing more oil and gas. These technology advancements have allowed them to more accurately find and produce resources in order to maximize profit for the companies. Although the technology efficiency is on the rise, trying to maintain a fresh and talented workforce within the industry is an area that is struggling. Another factor hurting this industry is the decrease in activity and transactions, which took a huge plummet in 2013 compared to 2012. Despite these setbacks, the oil and gas business still maintains to be dynamic due to how critical the resources are to the daily lives of everyone in the world.

6. a. Diversification is actually like “don’t put all your eggs in one basket”, hold one stock is risky, but on the other hand, investors won’t lose all of their money because of that one stock, investors holds more stock has low risk but they will loss most of their money if the company had bad performance. So, Dropping the basket will break all the eggs. Placing each egg in a different basket is more

company has an average growth margin of 24.5% and an average asset growth margin of

Even though the operating performance of Innovative Chemical Corporation (ICC) has been outstanding, there are some problems in respect of the share price appreciation. Firstly, P/E ratio will be used to evaluate the company’s stock and factors which affect company’s P/E ratio will be listed. Furthermore, discounted dividend valuation model will be demonstrated and fundamental factors which impact the share pricing will be analysed. Finally, the value of ICC at 30 June 2010 will be calculated using P/E ratio and DDM model. Meantime, the weakness of those two models will be illustrated, and alternative methodology will be applied to calculate the intrinsic valuation of ICC and then compare

This report provides a valuation of Wotif.com Holdings Limited (WTF) through adoption of the Capital Asset Pricing Model and calculation of the beta value. We shall also use the Constant dividend growth model and determine the growth of the company’s dividend. The results of the data shows that

Finally, a look at real time investments and how the average investor can obtain a better understanding of what they are actually investing in, why they should be looking to change what they diversify into both as a portfolio matures, and they themselves get closer to retirement age. In addition, why it is important to risk more when you are younger then when you get older and are close to retirement. This will all be presented within a fictions case study.

For example, let’s assume you invest 100% of your money into one stock. Your return and risk is based solely on how this stock performs, and if the company happens to tank, then you have just taken a huge hit to your investment and retirement money. In a different scenario, let’s assume that you invest only 10% of your portfolio in the same stock, while investing the remainder in 30% bonds and 60% other stocks. Assuming the same company tanks, you only risk a loss of 10% of your overall investment, with a remaining 90% still working for you. Theoretically, while the one fund is losing money, you should still expect the remaining 90% of your money to continue to grow. In this scenario, diversification has successfully decreased your risk of loss, while maintaining a level of growth to try and make up for the loss.

Genting Berhad is a big conglomerate with huge capital and investments that need to be controlled by the top management of the company. In this regard it is important to note that the vision of the company as devised by the leaders of the company should be communicated to all the employees of the company in an effective and efficient manner. When the vision and direction of the company has been defined for all members of the organization they put in right efforts to achieve and realize that vision.

Data collection for this report were collected from the annual report of five Bumiputera Listed Company on Bursa Malaysia from the year2008 to 2013, which are Gopeng Berhad, Heitech Padu Berhad, Ingress Corporation, KAF-Seagroatt and Campbell and Kencana Petroleum. Additional data and figures were extracted straight from financial websites of YAHOO!Finance and Wall Street Journal. Data key in and analye were done using Microsoft Excel

Companies and governments use capital markets to raise funds for their operations. Capital markets include primary markets, such as IPOs that are placed with investors through underwriters, and secondary markets, in which all subsequent trading takes place. Government agencies in different countries regulate local capital markets, though some, especially exchanges, play some role in regulating themselves”. Primary markets are used for new issues and secondary markets are used for existing issues for trading purposes. Stocks are bonds are the basic Capital market instruments which are used in both primary and secondary markets. Secondary markets are securities purchases mainly from other investors rather than directly from the issuing companies themselves. Stocks are used as capital market instruments for physical, virtual and auction markets. Bonds are traded in the separate bonds markets.