The assignment discusses “Top-Down” approach. Additionally, there is a description of overall macroeconomic environment. So, analyze the U.S. and relevant global macroeconomic outlook.

“Top-Down” approach-overall macroeconomic environment

CORE RESEARCH QUESTIONS AND VALUATION A. Background Information This corporate research and valuation project, which is fundamental in essence, shall be based on the “Top-Down” approach (any exception shall be justified and approved by the instructor). This approach shall begin with an examination of the overall macroeconomic environment and outlook, the industry of the selected company and then draw some implications about the prospects for the future operations and performance of the company. 1. Brief analysis of the overall macroeconomic environment. a. Analyze the U.S. and relevant global macroeconomic outlook.

“Top-Down” approach-overall macroeconomic environment

Determine the significant macroeconomic factors and developments that are most likely to affect the firm’s operations and performance? Clearly explain the connections. b. Identify whether the company’s operations or performance are cyclical or non-cyclical (i.e., whether they are sensitive the overall economy or business cycles? Why? (Some analysis of correlation, regression or the company’s stock beta, β, may be used as identification strategy). For example, perform a correlation analysis and a regression analysis relating “Sales growth rate to GDP growth rate” or “Earnings growth rate to GDP growth rate.” and 4. Corporate Performance and Other Financial Metrics a.

“Top-Down” approach-overall macroeconomic environment

Time series analysis of the company share price. Plot monthly time series (price against days) of the company’s share price over the most recent 60 months. The team may also conduct a trend analysis (regression) of the company stock’s share price; estimate the average annual growth rate during the period under consideration. Provide a plausible explanation of one or two largest swings in the share price during the period under consideraton. b. Describe whether the company is a value or a growth company (stock)? 

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