Using ‘bottom-up’ analysis and intrinsic valuation techniques to assess the merits of investing in the shares of Singapore Airlines and its potential to contribute to a portfolio with ‘income’ as its principal objective.
Provide a detailed evaluation of Singapore Airlines in the current economic climate.
Your briefing should include:
A) A review of the ‘top-down’ analysis that led to the focus on a particular company. A rational for considering particular economies, industries and companies from within those industries should be provided.
B) A fully explained/justified calculation of the current intrinsic value of the company-established using at least one DCF technique and one relative valuation technique (all figures employed including growth projections to be explained/justified and performance comparisons within industries and/or between countries explained.)
C) As the methods employed in ii) above are likely to result in different valuations, you are required to provide an academic justification of the valuation method(s) you will rely upon.