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Financial analysis and valuationInformation sources
20/4-2010
BBA
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Information sources today
The case of Givaudan S.A.
..both from the Library at BI
..sources on the web and beyond
http://en.wikipedia.org/wiki/Company_valuation
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Enterprise valuation - informationsources
The critical success factors is to have extensive knowledge of
the company enterprise and industry
In what industry is the company?
More than one industry?
Business valuation
Nytveit, Trond Stian. 2007. Verdsettelse : en studie av Norsk Hydro. URI: http://hdl.handle.net/2330/1600 . MasterThesis NORGES HANDELSHYSKOLE
http://hdl.handle.net/2330/1600http://bora.nhh.no:8080/handle/2330/19http://bora.nhh.no:8080/handle/2330/19http://bora.nhh.no:8080/handle/2330/19http://bora.nhh.no:8080/handle/2330/19http://hdl.handle.net/2330/1600 -
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You need to understand the company or asset
What drives the value behind that
Financial statements
Audited statements Tax returns
Press releases
Understand how the market is looking at the company,
products or brand Shareholders agreements
Business plans
History, developments, M&A
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Company Valuation - definitions
In finance, valuation is the process of estimating the potential
market value of a financial asset or liability. Valuations can be
done on assets (for example, investments in marketable
securities such as stocks, options, business enterprises, orintangible assets such as patents and trademarks) or on
liabilities (e.g., Bonds issued by a company).
Valuations are required in many contexts including investment
analysis, capital budgeting, merger and acquisitiontransactions, financial reporting, taxable events to determine
the proper tax liability, and in litigation.
http://en.wikipedia.org/wiki/Company_valuation
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Business Enterprise - Valuation
information
The market value is determined by multiplying the quoted share price of
the company by the number of shares.
Valuation approach is the general way which is followed to determine a
value indication of a business, corporate ownership interest, security, orintangible asset.
Business Valuation is an estimation of the market value of a corporation /
business. It differs from appraisal in the sense that appraisals only takes
into consideraton the tangible assets, but a valuation considers intangible
assets.
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Company valuation definition
A way of judging the performance of a business as compared
to others in the same line. Financial studies are conducted
whereby comparative benchmarking is done for this purpose.
Through these industry insights, the value of a business canalso be assessed.
Business Valuation terms / how much is my business worth
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The Givaudan company
..is it in good health?
Several information seeking tasks ahead if youre going to find
out
http://en.wikipedia.org/wiki/Company_valuation
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Company overview - homepage
Consists of?
Tangibles or intangibles?
Google for website ..any hard facts there?
What are sales talk and what are the breakdown facts?
Annual report?
The latest Quarterly?
Anything else you should look for?
Investor Relations
Youre the auditors and are personally responsible!
http://www.givaudan.com/givcom/
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The company analysis - homepage
What are their business ideas?
What do they sell exactly
Goals, strategies ?
What is all the talk of sustainability? Any thoughts? Whats all that about?
Do the Swiss have a good record on corporate social responsibility?
Do the company have any famous brands any value there?
Market value as in reputation?
Goodwill?
Wikipedia?
http://www.givaudan.com/givcom/
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Are they listed or unlisted / public of
private?
Stock prices gives you market confidence and expectations
How can you find out?
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Google finance for latest stock prices
Check Google Finance- http://www.google.com/finance
Do a search on Givaudan SA
Note down the stock symbol/ticker
Todays stock price compared to homepage? Any surprises?
Negative development?
Compare info with company website info
Any surprising news?
The segments how to valuate the different segments of thecorporation? All in the same industry?
Yahoo Finance - http://finance.yahoo.com/
http://www.givaudan.com/givcom/
http://www.google.com/financehttp://finance.yahoo.com/http://finance.yahoo.com/http://www.google.com/finance -
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Yahoo Finance - http://finance.yahoo.com/ Do a search for the company will get you
what info?
http://finance.yahoo.com/q?s=GVDNY.PK
GIVAUDAN SA (GVDNY=US) 2-weeksforecastPechala's Reports(Apr 9)
http://finance.yahoo.com/http://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/q?s=GVDNY.PKhttp://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://reports.finance.yahoo.com/w0?r=48136730:1http://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/q?s=GVDNY.PKhttp://finance.yahoo.com/ -
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Did they succeed in 2009?
How are they doing, really?
How can you tell?
Any explanations of the results from the latest quarterly? Financial statements newer than the latest Quarterly?
..for latest developments and trends
Does homepage give you all you need?
http://www.givaudan.com/givcom/
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Competition
Screen competitor - International Flavors & Fragrances Inc.
Google them for home page
Compare with Givaudan home page for first impression
Check them out in Google Finance too.
Note down ticker symbol
http://www.givaudan.com/givcom/
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FACTIVAa source brought to you by the BILibrary
Not on the free web
Check Factiva for company analysis
Search this way
Find the tab - Companies & Markets
-> Company
- > Company name Givaudan SA
The BI Library -> Databases -> Factivca
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Factiva charting
Compare with International Flavors & Fragrances Inc.
Differences in stock price?
Size
Number of employees
Development
Company strategy
Segments etc.
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Stock prices
Factiva - history & valuation - market valuation
Portfolio risk & return
Stock prices and variances
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IFF
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Givaudan AG IFF
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Givaudan AG IFF
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Factiva charting
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Factiva charting
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Factiva charting
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Factiva Comparison
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Industry/Market value?
Industryhow is the company doing in its industry?
How is the industry doing?
Market share and volume How is the market doing?
Growth in demand?
Impediments to growth?
Trend indicators? Identifying a trend? Consumer demographics? Any changes?
Business Source Complete for industry profile
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Industry overview
What kind of industry is the Fragrance and Flavour industry?
Exposure to risk?
Dependent on overall volatile economic conditions?
How is the overall world market doing where can you find info?
EUROSTAT
http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home
Swiss Stock Exchange
http://www.six-swiss-exchange.com/index.html - find Givaudan SA here
How is the rest of the stock market doing
Find out about riskswheres the companys largest markets?
Hows these regions doing macroeconomically?
What about interest rates? On the rise or stable?
http://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.htmlhttp://www.six-swiss-exchange.com/index.html -
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Industry forecasts & overview
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Company & Industry overview
Check Factiva for a news search of the company or industry
might be some stock reports who analyzes the company financials and recent news
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Company Strategy
Find out about their strategy
Find a competitor and benchmark strategy
Youre to look for any diverging major differences
Do the competitor have a different, smarter strategy? Should your company be doing likewise?
Your evaluation? Good, sound strategic choices?
http://www.givaudan.com/givcom/
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Amadeus - financial statements and more
Amadeus - for large western companies bakwards for 10
years
M&A
Financials
Graphs
Subsidiaries, se graph for this
company structure and segments
Business Source Complete for large companies, industryreports, market reports, SWOT analyses
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BUSINESS SOURCE COMPLETE
For company news
For industry profiles
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Media coverage
News
Older articles any scandals lately?
Social media? Whats brewing?
Consumer attitudes
Company reputation
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Social media
http://boardreader.com/ - tracks Discussion Forums, Search message
boards and forums
LinkedIn.com see Givaudan - Company Profile on LinkedIn
see news & who works where & contact people
http://www.blogsearch.google.com could be useful for official &
unofficial news but be careful with your sources must be trustworthy!
http://boardreader.com/http://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.blogsearch.google.com/http://www.blogsearch.google.com/http://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://www.linkedin.com/companies/givaudanhttp://boardreader.com/ -
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Free sources on the web?
Most of them are commercial
The Library web pages -> Database list
supplies you with most of what you need
Happy searching!