Industry analysis (1-2 page per group)

Industry analysis (1-2 page per group)

Please, follow the guideline from the powerpoint slides based on chapter 12.

1. Describe your industry.
2. How did global economy affect your industry?
3. How did domestic economy affect your industry (P/E ratio)?
4. Key domestic economy variables – which of them apply?
5. Is your industry cyclical or defensive?
6. Leading firms in the industry.

Data sources

 

1) Industry and economy-level historical data:

 

Famous professor Aswath Damodaran (http://damodaran.com) collected an unbelievably rich set of data on his website: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/data.html

Even more importantly, you can find there various industry averages of betas, debt ratios (very useful when looking for divisional cost of capital estimates), industry-level descriptions of capital structure and dividend policies, etc.

 

Other interesting links from Damodaran’s website:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/eqdata.htm

(finance data sources link page – note that some of the services require expensive subscriptions)

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/spreadsh.htm

(you definitely DO NOT need to use any of the Corporate Finance spreadsheets on this page to solve your project correctly. Still, you may find some of the spreadsheets useful – if not for this project, then maybe for your future assignments and career)

 

U.S. Treasuries: http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml

 

2) Information describing your company:

 

Financial statements, company info, SEC filings:

Yahoo Finance: http://finance.yahoo.com/

MSN Money: http://money.msn.com/investing (or any other public finance website, Google Finance…)

Good sources for betas:

Value Line: http://valueline.com

Corporate Bond Yields to Maturity:

FINRA:

http://www.finra.org/Investors/MarketData/

Bond ratings:

http://www.standardandpoors.com

The site requires free registration.

http://www.moodys.com/

Also requires free registration