In the
modern economic market, it is necessary for investors and decision makers to
evaluate the financial situation of enterprises. For the managers, the analysis
of financial statements can help to judge the development prospects of
enterprises, so as to manage and make decisions on the future development
direction. And investors can get the accurate business results of the
enterprise this year, which has important reference significance for whether to
invest in the enterprise. The purpose of this report is to analyze the
Australian department store, Myer, its financial status and provide investment
advice to potential investors and operating suggestions to its managers. Three
financial models were used to analyze the value of Myer, which are comparable
analysis (COMPS), dividend discount model (DDM) and discount cash flow (DCF)
models respectively.
References
[1]
Basu, S. (1977). Investment Performance of Common Stocks in Relation to Their Price-Earning Ratios: A Test of the Efficient Market Hypothesis. Journal of Finance, 32, 63-82. https://doi.org/10.1111/j.1540-6261.1977.tb01979.x
Fuller, R. J., Huberts, L. C., & Levinson, M. (1993). Return to P/E Strategies, Higgledy-Piggedy Growth, Analyst’s Forecast Errors, and Ommited Risk Factors. Journal of Portfolio Management, 19, 13-24. https://doi.org/10.3905/jpm.1993.13
Myer Investor and Media Centre (2017). 2017 Myer Annual Report.
https://investor.myer.com.au/Reports/?page=Annual-Reports
[6]
Myer Official Website. https://www.myer.com.au/
[7]
Penman, S. H. (2013). Financial Statement Analysis and Security Valuation (5th ed.). United States: McGraw Hill.
[8]
Tang, G., & Du, F. (2004). On the Three Dimensional Balanced Strategic Management of Enterprise Growth and Profit Risk. Accounting Research, No. 11, 31-37.
[9]
Ye, H. (2016). Is P/E Ratio an Effective Indicator for Investment Decision? An Empirical Analysis Based on Financial Position of Listed Companies in GEM. Accounting and Economic Research, 26, 41-51.
