BUSINESS VALUATION

Presented By:
Varun Dawar
 Equity-Best Asset Class?
15 Year CAGR return of various asset classes (2000-2015)

CAGR Returns (2000-2015)

Real Estate - India 8%

Real Estate - US 4%

Gold 10%

Brent Crude 7%

Debt 8%

Equities (BSE 30) 14%

0% 2% 4% 6% 8% 10% 12% 14%

CAGR Returns (2000-2015)

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EQUITY RESEARCH REPORT

First page: Summary of Investment Thesis and

Recommendation
Industry & Company Description
Investment Rationale
Valuation
Financial Analysis
Investment Risk

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CONTENTS OF ANNUAL REPORT

Directors Report and Management Discussion and

Analysis
Economy and Markets/Outlook
Performance of Business/Categories
Subsidiaries and Joint Venture
Balance Sheet
Statement of Profit and Loss
Cash Flow Statement
Schedules/Notes
Significant Accounting policies
Segment Reporting

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CONTENTS OF ANNUAL REPORT

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CONTENTS OF ANNUAL REPORT

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Financial Statements
Cash Flow statement gives useful information about cash flows which helps in
assessing the ability of enterprise to generate cash and cash equivalents.....
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

Operating activities are the principal revenue-producing activities of the

enterprise and other activities that are not investing or financing activities.
Investing activities are the acquisition and disposal of long-term assets and
other investments not included in cash equivalents.
Financing activities are activities that result in changes in the size and
composition of the owners capital (including preference share capital in the
case of a company) and borrowings of the enterprise.

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Financial Statements
Cash Flow Statement
Net profit after taxes -
Adjustments
Add: Non Cash Items (Dep/Amort) +
Add: Foreign exchange loss +
Less: Interest income -
Less: Dividend income -
Add:Interest Expense +

+/- Working Capital Changes +/-

Increase in sundry debtors -
Decrease in sundry debtors +
Decrease in inventories +
Increase in inventories -
Increase in sundry creditors +
Decrease in sundry creditors -

Cash Flow from Operations a

Purchase of fixed assets -

Proceeds from sale of equipment +
Interest received +
Dividends received +

Cash Flow from Investing Activities b

Proceeds from issuance of share capital +

Proceeds from borrowings +
Repayment of borrowings -
Interest paid -
Dividends paid -

Cash Flow from Financing Activities c

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period y

Cash and cash equivalents at end of period y+a+b+c

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