Premium Essay

Valuation of Encore International the by Marc Scott

In: Business and Management

Submitted By MrCahee
Words 1132
Pages 5
Valuation of Encore International The by Marc Scott
Raymas
BUS505: Finance
Instructor: Dr. Paulone
May 21, 2016

INTRODUCTION As a financial analyst, you may be tasked with an assignment from the Chief Financial Officer (CFO) to perform a particular task. When assigned a task, it must be completed and scrutinized with the goal of having zero errors. Your report may be the deciding factor in your employer’s decision to continue or alter future plans for the corporation. In this case study titled, “The valuation of Encore International by Marc Scott” you will read a short analysis of how Marc Scott used the data supplied by his CFO’s to compile the information required for him to produce. Just as CFO’s opinion is valued by the Chief Executive Officer (CEO) and board of directors, as a financial analyst your research is valued by your CFO. With responsibilities such as this, it is of the utmost importance to be efficient and effective with all tasked assigned.
DISCUSSION CONTENT Even though securities analyst believe it is impossible for Encore international to keep up at the pace they are currently operating at, Jordan Ellis (founder of Encore International) did not let their criticism bother him. Mr. Ellis actually has a vision that will not only keep them at the current pace, but they will have a short-term spike and then level off to current growth. Encore International didn’t become successful behind bad or misinformed decisions. This is the driving reason behind the tasker of ensuring the facts and figures are correct in order to push forward. Knowing how much your stocks are worth is essential information needed before moving forward with future endeavors. Book value per share is simply the amount per share of common stock that would be received if all of the firm’s assets were sold for…...

Similar Documents

Premium Essay

Wii Encore

...Wii Encore Case Analysis Since 1983Nintendo has continued to introduce game consoles to the gaming market starting with Famicon in 1983 and more recently the Nintendo Wii in 2006. They have focused on keeping the platform prices low but also offering the consumer high game quality as well as image quality. Nintendo has been associated with popular games such as Super Mario Brothers (1985), The Legend of Zelda (1987), and Metroid (1987). Since the release of the Nintendo Wii in 2006, famous for the introduction of motion-censoring controllers, Nintendo continued to outsell its two competitors, Sony PlayStation and Microsoft Xbox. It was not until 2010 that both of Nintendo’s competitors launched their version of motion sensing controllers. This was the beginning of Nintendo’s fall in sales compared to Sony and Microsoft. Recently, Nintendo had a press conference about the release of their new console called the Wii U. The Wii U console also features a new controller referred to as the “GamePad” which is embedded with a touch screen. The system will be backwards compatible with the previous console, the Wii. Being that Nintendo has continued to be outsold by its competitors in 2010 and 2011, the Wii U is a smart move for Nintendo. Running another low-end encroachment (Wii U) could be Nintendo’s successor of the Wii. Rather than sustaining their current the technology, the Wii, by just making small incremental improvements, creating a disruptive technology could help......

Words: 637 - Pages: 3

Free Essay

A Scott

...In the beginning of the 17th century the Scottish people faced religious prosecution and English control, many fled to the Americas to find their freedoms, others were forced Because of hostile clan wars and the country’s political problems ("The Original Scots Colonists of Early America" 1612 - 1783, Dobson). Many Scotts were deported as criminals and banished to the Americas, forced to work for English plantation owners until they could buy their freedom (Scotland Guide - Scottish History - Scots emigration/immigration to the US." Stevens). Because of the strict clan system that the Scottish live under, when one member of the clan immigrated to the Americas, the other members of the clan would normally fallow, by the time of the American Revolutionary war had begun, around 150,000 Scotts had immigrated to North America ("The Original Scots Colonists of Early America" 1612 - 1783, Dobson). For the Scotts that came to the Americas freely, on their arrival they congregated in Scottish communities, Scottish families could be found throughout the colonies, but many centralized in Georgia, the Carolinas, upper New York, Nova Scotia and Jamaica, due to the fact of fertile land, good farming, and job opportunities ("The Original Scots Colonists of Early America" 1612 - 1783, Dobson). Although once they arrived they were looked down upon by the Germans, Dutch, and English, because they were thought to be less civilized and drunks (Scotland Guide - Scottish History - Scots......

Words: 705 - Pages: 3

Premium Essay

Valuation

...AMITY INTERNATIONAL BUSINESS SCHOOL ANALYSIS AND VALUATION OF EQUITY SECURITIES OF TATA CONSULTANCY SERVICES , INFOSYS AND WIPRO LTD. SUBMITTED TO: SUBMITTED BY : Ms.Vibha Singh Atreya Vyas A1802011445 Section C MBA IB TABLE OF CONTENTS S.No | Topic | Page Number | 1 | Introduction | 3 | 2 | Research Methodolgy | 4 | 2.1 | Research Objectives | 5 | 2.2 | Proposed Literature Review and Tentative Hypothesis | 5 | 3 | Data Collection | 7 | 4 | About Companies and Research | 8 | 5 | Limitation of Study | 11 | 6 | References | 12 | 1) INTRODUCTION In today’s era every company needs cash or cash equivalents to run its day to day activities smoothly. The major sources through which companies can borrow money are: * Bank Loans * Debenture * Preference Share * Equity Share. Bank Loan is the amount which companies receive after fulfilling all the required information which is mandate according to the rules of banks. Companies need to mortgage its assets as guarantee for the future repayment of its loan amt. on the loan bank charge interest which company has to pay irrespective of the fact that company is in profit or loss. Debentures are the instruments which are used to acknowledge the receipt of the debt form the debenture holders. Debenture Holders are sought lenders for the company. They...

Words: 4106 - Pages: 17

Premium Essay

Encore

...-Sajja Shah Contributing in the betterment of the society; Social Welfare Society of IoBM is committed to raising funds and awareness to improve the living conditions of those members of the community who are less privileged and deserve more. Playing its due part once again SWAT organized a fundraiser event, ENCORE- the night of performing Arts a fundraiser in its own capacity to bring betterment to the underprivileged. ENCORE was held on Sunday 9 December, 2012 at the Royal Rodale Club, Karachi. The night of Encore started with a theatrical performance, a play namely “Kuttey” which was a dark comedy performed by Naatak bridge. Following the play was Silent Sketches by FESF Deaf Performers which was highly applauded by the audience. As a token of appreciation, team SWAT presented certificates to the participants. The evening proceeded further with Improvised Comedy by LOL WAALAY and came to its end with the outstanding musical by Usman Riaz . There were also performances by the very own members of SWAT that included Moaz Afridi and Zair Zaki skills at music and vocals. Along with the events SWAT also organized an exhibition going for apparel and home accessories where multiple designer labels like Colour Rush, Niche by Nusrat Alamgir, Rumor, Muzna’s Malboosat, U & M, Shagufta Imam, Amna Noorani, Shahid Afridi Menswear, Naqash, Jiya’s Casual Line, Buttons Wear, and Orange displayed their clothes. Well known jewelers namely Fari’s, Al Oman Jewelers displayed their......

Words: 389 - Pages: 2

Premium Essay

Valuation

...Bank Valuation: Comparable Public Companies & Precedent Transactions Picking a set of comparable companies or precedent transactions for a bank is very similar to what you’d do for any other company – here are the differences: 1. The set has to be more specific due to differing regulatory requirements for different countries and types of banks. For example, if you’re looking at large-cap commercial banks in the US, you should not include regional banks or insurance companies even if they’re also large-cap – nor should you include Credit Suisse or Deutsche Bank, because they’re not US-based. 2. Rather than cutting the set by revenue or EBITDA, you use metrics like total assets or total deposits to determine the “size” of banks. 3. Instead of traditional metrics like revenue and EBITDA, you list the metrics and multiples that are relevant to a bank: EPS, Return on Equity (ROE), Book Value (BV), P / E, P / BV, and so on. Operating Metric Equity Value Book Value (BV) How to Calculate It Shares Outstanding * Share Price Shareholders’ Equity(1) What It Means How much are we worth? How much are we worth according to our assets rather than the market? How much are we worth to everyone except preferred shareholders? How much are we worth according to our incomeproducing assets? How much money do we make after taxes? How much money is left to pass on to common shareholders? How much in dividends could we potentially issue to each common shareholder? Does our market cap overvalue or......

Words: 1938 - Pages: 8

Premium Essay

Needle.Com Valuation

...hardware, advertising, and power. • The company may incur some costs when switching between suppliers Management Morgan Lynch – CEO & Founder Lynch has a BS in international relations from BYU and an MBA from IMD Business School. He initially founded Logoworks, a company that created logos, brochure designs, and advertising which he ran from April 2000 to May 2007 when the company was purchased by HP. He is generally considered the person who coined the term “fan sourcing”, a branch of crowdsourcing where the company outsources tasks to brand fans. Logoworks was a company that provides graphic design, logo design, brochure design, web design, and advertising predominantly for smaller businesses. The company created an online designer community where small business could connect to and use to create their designs. This allowed small businesses be heavily involved in what they wanted while eliminating costly meetings and reducing the cost of the design process. Mikko Valimaki – CTO & Founder Valimaki has a BS and an MS in computer science from BYU. He built the chat platform that Needle uses on the eCommerce sites it partners with. He has been with Needle since January of 2010. His background includes being a development manager at Novell and the CTO of tech companies GroupLink and Cerberian Inc. Scott Pulsipher – COO Pulsipher has a BS in business from BYU and a graduate degree from Harvard Business School. Prior to joining Needle in June of 2013, his......

Words: 3524 - Pages: 15

Premium Essay

Valuation

...Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. It operates retail stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel stores, Sam’s Clubs, neighborhood markets, and other small formats, as well as walmart.com; and samsclub.com. Wal-Mart’s main strategy is to provide customers with everyday low prices. It is known for its discount stores. Wal-Mart’s competitors are Sears, Target, Gap, limited, Dillard’s, Macy’s and JC Penny. The major membership only warehouse competitor is Costco Wholsale. Wal-Mart became a publicly traded firm in 1970 with an initial stock price of $16.50 per share and subsequently, in March 1974, declared its first cash dividend of $0.05 per share (after two two-for-one stock splits). It had undergone 11 two-for-one stock splits, and thus, an original lot of 100 Wal-Mart shares had grown to 204,800 shares after the most recent split in April 1999. For this valuation we will be using the dividend discount model, the capital asset pricing model (CAPM) and price/earnings multiples. Dividend Discount Model (DDM) In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Dividends are the cleanest and most straightforward measure of cash flow because these are clearly cash flows that......

Words: 1158 - Pages: 5

Premium Essay

Dr Marc

...GARABEDIAN, Jean-Marc 13208 Case analysis: Obermeyer Sport Obermeyer is a high-end fashion skiwear designer and merchandising company. Some of their merchandise include parkas, vests, sweater, ski suits etc… however their parkas remain their most profitable design. The product is offered in five different genders: men, women, boys, girls, preschoolers and the company segmented each gender market according to price, type of skier and fashion forwardness. The Us Skiwear sales for Obermeyer was estimated at 32.8 million dollars, which includes 45% market share for children and 11% market share for adults. However the company is facing several issues, mainly because of their lack of an efficient demand forecasting system, affecting their production. The fact that inventory is also quite high over the years also reduces the company’s profits. The excess merchandise is then sold at deep discounts, and in many instances, the most popular items get sold out faster than expected, with no time for replenishment due to high lead times. Another important question we will try to answer is whether Obermeyer is choosing the right path to increase its production in Mainland China rather than in Hong Kong. We will discuss why Obermeyer is facing these issues and give our recommendations in order for the company to become more profitable and competitive. The first major issue with Obermeyer is their high lead times. The company sources most of its products through Obersport from......

Words: 925 - Pages: 4

Premium Essay

Valuation

...VALUATION TECHNIQUES Vault Guide to Finance Interviews Valuation Techniques How Much is it Worth? Imagine yourself as the CEO of a publicly traded company that makes widgets. You’ve had a highly successful business so far and want to sell the company to anyone interested in buying it. How do you know how much to sell it for? Likewise, consider the Bank of America acquisition of Fleet. How did B of A decide how much it should pay to buy Fleet? For starters, you should understand that the value of a company is equal to the value of its assets, and that Value of Assets = Debt + Equity or Assets = D + E If I buy a company, I buy its stock (equity) and assume its debt (bonds and loans). Buying a company’s equity means that I actually gain ownership of the company – if I buy 50 percent of a company’s equity, I own 50 percent of the company. Assuming a company’s debt means that I promise to pay the company’s lenders the amount owed by the previous owner. The value of debt is easy to calculate: the market value of debt is equal to the book value of debt. (Unless the debt trades and thus has a real “market value.” This information, however, is hard to come by, so it is safe to use the book value.) Figuring out the market value of equity is trickier, and that’s where valuation techniques come into play. The four most commonly used techniques are: 1. 2. 3. 4. Discounted cash flow (DCF) analysis Multiples method Market valuation Comparable transactions method Generally, before...

Words: 11224 - Pages: 45

Premium Essay

Encore

...Misheailia Neil Which performances contained the greatest value in performance content (style, genre) and characteristics (audience response, performer interaction, company size, training; length of performance, structure, technique)? Identify 3 performances to build the content of your argument. (Noises Off, Orchesis, and Vivo Flamenco Carlota Santana) The performing arts has always had trivial meaning within the academic and artistic portions of my life, but after being continuously exposed to the Elmira College Encore Program for two consecutive semesters my creative side has truly developed after attending each of the performances. Each individual show provided a diverse atmosphere accompanied by a lively essence that compelled me to seek more. The distinctive characteristics and content of the discrete productions further encouraged the development of my artistic taste with each performance consisting of a remarkable blend of style, technique, musical composition, choreography, acting, and performer interaction. Each performance seemed to be almost incomparable to the last and it was such a pleasure to be an audience member at every show I attended. The development of my artistic taste allowed me to easily depict which characteristics and content were most valuable within a performance. Without some of the content......

Words: 1365 - Pages: 6

Premium Essay

Encore

...Case Analysis: Encore International Encore International -Case Study Overview of Case Study Encore International is a casual wear company and had experienced rocketed sales of $300 million i.e. spectacular growth subsequent to 10 year of business. Their further plan comprises of a long term expansion in market of Europe and Latin America preserving their future dividend growth. Furthermore, analyst of the Encore has speculated that this company perhaps encounters small or no growth in future as well as future dividend. As the same time, the founder of the company Jordan Ellis consider that the company can preserve steady annual growth rate in dividend per share of 6% or possibly 8% for next two years and 6% afterward. This is based on the European and Latin American market expansion plan. With this, it is expected that the risk will be from 8.8% to 10%. The risk free rate is 6%. CFO of the company has assign Marc Scott - junior financial analyst for evaluating the current stock of the firm with respect to the conservative's and Jordan Ellis's predictions. Discussion From the data available in the case study we will calculate firm's current book value per share, firm's current P/E ratio, current required return for Encore stock, new required return for Encore stock assuming that they expand into European and Latin American markets as planned, with no growth in future dividends the value per share of the Encore stock. a) Encore International......

Words: 308 - Pages: 2

Premium Essay

Valuation

...of quality cement in Bangladesh. As per the course requirement we are told to conduct the fundamental analysis of Lafarge Surma Cement Limited. The company is a listed company and its shares are traded in the capital market. We have collected the annual reports of last couple of years and from the data we have prepared the proforma income statement, free cash flow and then ultimately the valuation of the company’s share. We have shown the market strategy of the company. They prefer differentiation that is high price for high quality. The industry life cycle indicates that Cement industry is in its growth stage. We have shown the competitive forces along with Michael Porter’s five force model. Competitive advantage and disadvantages are described there. Then the ratio analysis gives us the performance of the company. Then the prospective analysis gives us the intrinsic value of the company’s share, which is 16.79 Tk. whereas on 31 December, 2012 the market price was around 32 Tk. We have confirmed our valuation with the help of Sensitivity, Scenario and Simulation analysis. After the valuation we have found that the share is priced higher than the intrinsic value. That means the share is Overpriced. Holders of the share should sell the share or should take a short position of Lafarge surma’s’s share. Analysis of the performance of the company through ratio analysis on four dimensions against benchmark, peer and industry as well as over time has been done. Determining......

Words: 8111 - Pages: 33

Premium Essay

Scott

...DEVELOPING GOOD BUSINESS SENSE BUS/210 Courtland Trent Scott University of Phoenix Axia College  The three companies that I have chose are Wendy’s, McDonalds, and Burger King. I have researched and also observe how the employees do their tasks within the business. In today’s assignment I will be discussing the main kinds of OMM cost companies have and how does the OMM cost companies affect the operations. I will also be discussing how does the company design their operating systems to give them a competitive advantage. Last I will identify which five main components of operations, materials management cost, and the methods companies use to reduce them. Within any company the primary goal for operation managers is creating a happy and loyal costumer. By effectively analyzing and managing their business operations, the company creates the right products with the right features at the right cost. Without using operation management materials you can do none of this. In a business you have to have the right product at the right price and the other way is having the product in stock that the costumers are buying. If you don’t keep products that customers are buying then the customer will find someone else to spend their money and you company will lose profits. McDonalds is the world largest chain of hamburgers fast food restaurant, serving more than 58 million customers daily. A McDonalds restaurant is either operated by a franchise, an affiliate, or the corporation itself....

Words: 723 - Pages: 3

Free Essay

Scott Mortgage

...Running head: SCOTT MORTGAGE Scott Mortgage James Jones Organizational Behavior 14 June 2010 Abstract This paper discusses the nature of change in a mortgage lending firm. It takes a look at the reaction to change from the employee and organizational view points. The characteristics of Ethical Intensity are reviewed as pertaining to the decision making process. It identifies the Decision Making Model and Approach to Change that Scout Mortgage used in revamping its human capital structure. Nature of Change The 21th Century has ushered in several factors that have been the catalyst for a dynamically transforming environment. Scout Mortgage, a loan mortgage broker since 1999 (Hellriegel & Slocum, 2009) has experienced the bullish and the bearish economic environment. In a work environment, the typical factors of change are driven by technological advancements which enable global-market-reach or globalization. With the increase of information technology and global communications, the world is communitively smaller. Any situation that affects a local market can be transformed into a national or international issue. The domestic housing sector economic downturn along with other Wall Street unethical and irresponsible actions have not only lead to a national but international recession and market collapse. In the case of Scout Mortgage, the technological advances have changed the way the company’s Loan Officers conducts business. Technology has automated a lot of......

Words: 997 - Pages: 4

Premium Essay

Valuation

...Valuation M&A involves using more than one valuation technique to arrive at a valuation that we think is fair. The most common techniques used are: ➢ Comparable Publicly traded companies (“Public Comps”) – this analysis indicates how the stock markets are valuing companies that are similar to the target ➢ Precedent Comparable Transaction analysis (“Transaction Comps”) – this analysis indicates the valuations at which prior M&A transactions have been done in the same industry as that of the target. ➢ DCF analysis – is one of the most important valuation techniques ➢ Sum-of-the-parts analysis – If a target has more than one lines of business, the financial advisor will value each business separately. Therefore, each “part” might have its own Public Comps, Transaction comps and DCF (with different WACCs for each part). The total value is the sum of the parts ➢ Other –depending on the unique characteristics of the transaction, financial advisors will perform a number of other analyses to arrive at fair value like Leveraged Buyout (“LBO”) Analysis, Historical Exchange Ration analyses etc. Valuation M&A involves using more than one valuation technique to arrive at a valuation that we think is fair. The most common techniques used are: ➢ Comparable Publicly traded companies (“Public Comps”) – this analysis indicates how the stock markets are valuing companies that are similar to the target ➢ Precedent Comparable Transaction analysis......

Words: 343 - Pages: 2

Watch now! | English Sterling Silver scrap salt pots serviette ring | Watch now