Investments

In: Business and Management

Submitted By Marianna82
Words 1439
Pages 6
INVESTMENT ANALYSIS
AF335: Investments

Table of Contents

1. Introduction…………………………………………………………………………....3
2. Equity Analysis………………………………………………………………………..3
3. Recommendation……………………………………………………………………....6
4. JLG Equity Analysis Template………………………………………………………7
5. Value Line Report……………………………………………………………………12

INTRODUCTION

PepsiCo is a world leader in convenient snacks, foods, and beverages, with revenues of more than $39 billion and over 185,000 employees. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker(http://phx.corporate-ir.net/phoenix.zhtml?c=78265&p=irol-homeProfile&t=&id=&).
Their brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending.

PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001(http://phx.corporate-ir.net/phoenix.zhtml?c=78265&p=irol-homeProfile&t=&id=&).

I’ve selected PepsiCo as my investment and Value Line report was the key factor in my decision.

EQUITY ANALYSIS

Equity analysis includes analysis of traditional and value-based metrics.
Traditional metrics include expected growth rates, price multiples, projected ROE, fundamental stock return and residual income.

Expected growth rates and price multiples combined with relative valuation measures based on accounting and market data are used by equity analysts and are very important to me, as an investor, and these measures help to determine the attractiveness of the stock.
Growth measures that are included in my analysis and will be described include: • Revenue growth • Cash Flow(CF) growth • Earnings Per Share(EPS) growth…...

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