In: Finance
in order to decide whether you should buy sell or hold stocks with Fortescue Metals Group Limited (FMG.AX) an investment recommendation report is needed. The report provides an assessment of the company's current position and future prospects, incorporating the use of various valuation techniques to arrive at estimates of the intrinsic value of the company's shares. Your report should make a case for the company's shares to be rated in one of the following ways:
Evaluate the relative historical financial performance of the company among its peers
1.identify the firm's competitors and discuss why they have been selected
2.identify, and explain the relevance of, five financial ratios of your choice (not to include ROE, Net Profit Margin, Total Asset Turnover or Financial Leverage) for the company and its peers (potential ratios to include Return on Assets, NPAT, Debt to Equity, Gross Margin, Operating Leverage, EPS Growth, Interest Cover Ratio)
3. explain the performance of the company compared to its peers using this analysis
(analyse and explain the reasons for changes in these ratios over the past five years and compared to the average of the past five years do not simply describe the changes in the ratios)