분야
docxII. Financial Analyses of Each Pair of Companies
A. American case
1. Evaluation of Financial Ratios
- Short term solvency ratios
- Asset utilization, turnover ratios
- Long-term solvency or financial leverage ratios
- Profitability ratios
- Market value ratios
2. Investigation of Du Pont Identities
3. Underpriced Stock And Underlying Reasons
B. Korean case
4. Evaluation of Financial Ratios
- Short term solvency ratios
- Asset utilization, turnover ratios
- Long-term solvency or financial leverage ratios
- Profitability ratios
- Market value ratios
5. Investigation of Du Pont Identities
6. Underpriced Stock And Underlying Reasons
III. Appendix
A. Financial Ratios
B. Financial Figures
This team project focuses on how financial ratios can be interpreted to judge whether a company’s stock price is overpriced or underpriced, with respect to another’s in the same industry. In order to enhance the predictability of financial statement and information, less dynamic, stable industries were chosen from each country so that there are fewer aberrations. The paper initially evaluates different ratios representing short-term solvency, asset utilization/turnover, long-term solvency or financial leverage, profitability and market values for companies in the same industry within same country. Then, the paper further scrutinizes each component of DuPont Identity and compares how well each company is carrying out operating, investing and financing activities. As a result, from these analyses, the paper derives some meaning from the ratio and suggests few reasons why one company’s stock price with respect to another is overpriced or underpriced.
II. Financial Analyses of Each Pair of Companies
A. American Case Investigation
1. Evaluation of Financial Ratios
