Financial Statement Analysis – Group Project
Aim: The aim of this assignment is to learn how to apply financial statement analysis and business valuation
techniques.
Company: BioNTech
https://investors.biontech.de/static-files/4e7e11ad-14dd-4b8b-9ad8-5500c6681b4a
General Rules:
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A group generally consists of 4-5 people (there might be exceptional cases with a different number
of members).
Students have to self-enrol in a group. Group enrolment will be done via Brightspace.
Students will work together (equal contribution is expected from each group member) and produce
a group report that is concise and similar in style to an executive summary (approx. 3,000 words,
excluding tables).
A report is expected to have at least the following elements:
 A title page [including the name of the course, name of the report, names and student
numbers of all group members (who actively worked and made a contribution to the
assignment), group number, and date of submission].
 A short introduction about the company (industry, economic environment, company
background, strategy, accounting policies, etc.).
 Question numbers and titles for each analysis.
 All tables must be incorporated within the body of text and close to the associated
questions.
The group assignment includes all topics covered throughout the lectures.
Successful financial statement analysis and business valuation require an in-depth analysis of all
company-related information (industry, economic environment, company background, strategy,
accounting policies, etc.). Students must use common sense and judgment throughout the analysis.
The assignment will be assessed according to the relevance, grounding, and the reflection on the
answers. We will also take into account the layout of the report and the language usage (Please see
the assessment form on Brightspace).
Assignment Questions:
Q1: Conduct industry structure and profitability analysis in 2022 for each of the main markets the company
is involved in. Conduct competitive, corporate strategy, and management (CEO and corporate governance)
analysis for the company in 2022. (refer to Chapters 1 and 2).
Q2: Conduct accounting analysis by critically analysing the company’s key accounting choice(s) in 2022,
assessing the accounting flexibility regarding these choices and the quality of disclosure, and identifying
potential red flags for the company in 2022. (refer to Chapters 3 and 4).
Q3: Conduct financial analysis to understand the company’s profitability, operating management, financial
management, and the investment management for the financial year-end 2021 and 2022, by referring to all
information you have learned during this course. (refer to Chapter 5!!!!!!).
a. Evaluate the profitability of the company between the years 2021-2022.
b. Evaluate the efficiency of the operating management by applying common-size analysis over the period
2021-2022.
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c. Evaluate the investment management of the company between the years 2021-2022 by using ratio
analysis.
d. Evaluate the financial management of the company between the years 2021-2022 by using ratio analysis.
e. Evaluate the sustainable growth rate of the company over the period 2021-2022.
Q4: Based on the information provided by the company in its annual reports, forecast the condensed
income statement, condensed balance sheet and free cash flow for the financial year-end 2023, 2024
and 2025.
Q5: Based on the forecasted numbers, estimate the value of the company’s equity by using (1) equity
valuation based on abnormal earnings and (2) asset valuation based on free cash flows for debt and equity
holders. Assume the terminal year is the financial year-end 2025.
N.B.: In order to estimate the firm value, you should first predict an appropriate rate for the sales growth
beyond the terminal year and calculate the cost of equity or weighted average of the cost of capital. You
may refer to any source including web or databases to make your calculations (if so, please give the reference
of your source(s)). (refer to Chapters 7 and 8).
Q6: Please answer the following questions:
a.
As a financial analyst, would you recommend to make an investment in the company? Explain your
answer and provide supporting arguments (refer to Chapter 9).
b. Based on the historical performance and forecasted numbers, critically evaluate the creditworthiness
of the company. (refer to Chapter 10). As a credit institution, would you recommend granting a new
loan equal to 20% of the existing total long-term debt of the company for a new capital investment in
Turkey? If no, why? If yes, under which conditions?
Submission Date:
Groups will upload their draft project to Brightspace (the menu: “Group project  XX Draft upload”). In
total, students will upload 4 drafts and 1 final version of the project. Students should upload the final digital
version of the group project to Brightspace (the menu: “Group project  Final Draft upload”).
Submission Deadlines:
25-Sep-2023 23:59
9-Oct-2023 23:59
16-Oct-2023 23:59
23-Oct-2023 23:59
30-Oct-2023 23:59
First Draft of the Group Project (Q1-Q2) (max. 5 points)
Second Draft of the Group Project (Q1-Q3) (max. 5 points)
Third Draft of the Group Project (Q1-Q4) (max. 5 points)
Fourth Draft of the Group Project (Q1-Q5) (max. 5 points)
Final Draft of the Group Project (Q1-Q6) (max. 80 points)
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