For your Final Project in the course, create a full analysis between two different companies in the same industry (for example, Coca Cola and Pepsi). Please ensure that you fully explain all calculations and that you answer every question thoroughly. You will need to locate information about the two companies’ annual financial statements for the most recent year available. To do so, go to one of the many financial sites on the Internet to download their reports.
Your analyses should address the following items:
Complete your study with a full DuPont Model.
Specifically, after calculating the ratios, explain what each tells you about the company and compare/contrast with the other company. For example, when discussing the day’s sales in inventory and inventory turnover, indicate where and why there might be a significant difference between the two companies you have selected.
Finally, using two of the several valuation models we have studied in this course, demonstrate whether the stock is overvalued, undervalued, or correctly valued by the market. They might include CAPM, Dividend Discount, Free Cash Flow, or Earnings Multiplier, your choice, but be prepared to defend your answer in your final presentation.
The paper must follow APA writing style guidelines for citation (both in-text and reference), structure, grammar, spelling, and punctuation. Include your analytical comments and add charts or graphs if they help to prove your point more clearly.