Скачать или смотреть Holt valuation challenge: investment pitch

Slide 1
Hello,
Welcome to Holt valuation challenge, this challenge is all about investment analysis.
My name is Muhammad Lamino Salihu
Graduate of finance and Banking from stamford international University Bangkok, Thailand.
lets quickly have an overview of my two chosen companies for investment purposes (Petrobras VS Rosneft), both companies are among the top 24 companies in the petroleum industry. Petrobras with a market capitalization of $93.5B and a 2.7% global market while Rosneft with a market capitalization of $69.9B and a global market share of 2.6%. I chose Rosneft oil company for an individual investor who want to increase their wealth in the for seen future.
Slide 2
Using the Holt valuation methodology: let me quickly show you the reason why I choose Rosneft over Petrobras. even though both companies are good for investment depending on the investors level of risk taking.
Slide 3
Petrobras CFROI is forecasted to increase from 3.58% in 2018 to 4.56% in 2023. however, the company's asset growth is -1.47% and its forecasted CFROI is -0.00% to 2023 because of a decline in PV. However, the company’s total shareholders return relative to S&P 500 index has been increasing over the years to 2019. Which basically means the company’s management are increasing shareholders wealth rather than destroying it. Compared to
Slide 4
Rosneft which their CFROI is forecasted to increase from 5.02% in 2018 to 5.50% in 2023, Rosneft company outperforms Petrobras with and asset growth of 4.11% in 2018 and its forecasted CFROI is at 2.67% to 2023 because of its sustainable increase in cash flow while Petrobras cannot sustain an increase in its cash flow. The Rosneft company’s total shareholders return relative to the S&P 500 index has decrease a bit from 2018 to 2019 while Petrobras was able to increase shareholders wealth. Petrobras won. Next is
Slide 5 & Slide 6

the use of holt warranted price, starting with Petrobras which the price shows an upper trend of +63% with a deviation of -2% which is reasonable to buy. while that of Rosneft shows a downward trend of -15% with a deviation of -49% quite reasonable as well.
Slide 7 & Slide 8

This basically means that Petrobras has a high tendency of not paying its debt obligations than Rosneft which needs to be taking into account when investing in a company as well as the credit rating. Petrobras crediting rate grade is speculative which means there's a major future uncertainty. while Rosneft is adequate. clearly, Rosneft won
Slide 9
Lastly, we look at the scorecard and from the overall view, Rosneft won with a higher growth rate and higher risk level which is good for investors that are risk takers while Petrobras is good for investors that are not risk takers.