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STOCK EVALUATION - Assignment Example

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Author : rbernhard

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STOCK EVALUATION Introduction The company chosen for stock evaluation is Pfizer Inc., which is an American MNC whose headquarter is located in New York City, founded in 1849. It is a research and development, global pharmaceutical company that operates in five major segments – Animal Health and Consumer Healthcare, Emerging Markets, Specialty Care, Primary Care…

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STOCK EVALUATION

The company’s stocks are traded at New York Stock Exchange and it also forms one of the companies in Dow Jones Industrial Average, and the S&P 500. The company’s total revenue for the year 2011 was over USD 67.41 billon with a net operating income and net income of USD 12.75 billion and USD 11 billion respectively. Its total asset and equity for the year 2011 was USD 189 billion and USD 81.19 billion respectively. Between the year 2000 and 2011, the company has regularly paid dividends to its shareholders, quarterly, with Average dividend of 0.19, Maximum dividend of 0.32, and Minimum dividend of 0.09. Economic Analysis The State of Overall Economy The economic analysis of a business comprises of analyzing not only the fundamentals of the business, but the overall Macro-economic as well as Micro-economic factors. It is also known as the top down approach because a stock analyst observes the macro and micro economic variable like, GDP, inflation rate, Repo rates, Interest rates, consumer spending, various indices, political and economic stability, government policies, competitors, industry performance, etc. to judge the overall state of business, by analyzing first the Macro factors and then the micro factors – industry and competitors and then the company. ...
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