Non-Quantitative Projects
PROJECT #1:
Retail Industry Company
Comparable & DCF Analysis
-- Brandon Ngiam
Tina Chen
Project Analysis Target
- Target
Evaluation Method 1
– Company Comparables
Select the Universe of Comparable Companies
Locate the Necessary Financial Information
Spread Key Statistics, Ratios, and Trading Multiples
Benchmark the Comparable Companies
Determine Valuation
Evaluation Method
– Discounted Cash Flow Analysis
Study the Target and Determine Key
Performance Drivers
Project Free Cash Flow
Calculate Weighted Average Cost of Capital
Determine Terminal Value
Calculate Present Value and Determine
Valuation
DCF Analysis Template
What can we Learn from this Project?
• Apprehend history and major events
• Dive in retail industry and learn key techniques of M&A
in the industry and be prepared with knowledge for
future analysis in other industries
• Equip project analysts with valuation techniques
PROJECT #2:
Delta
Project Delta
• What is Project Delta?
– A project to promote general but comprehensive
understanding of options, its trading strategies, and
valuation model.
– A strong starting point for those desiring to learn
more about financial derivatives.
• Why Project Delta?
– It is a good preparation for…
• various careers in finance.
• more specifically, finance, mathematical finance classes,
even job interviews.
Goals
• Gain a deeper insight into one of the most widely
used derivatives.
• Get familiar with various useful trading
strategies.
• Learn about valuation model and its different
applications in a trader’s perspective.
• Apply what have been learned to solve real
problems.
• Develop logical skills and tools for students in
finance.
Tentative Weekly Agenda
• Week 1: Definition of option & Types & Variations
– Mechanisms; Call/Put; Styles; Assets
• Week 2-4: Option Trading Strategies
– Week 2: Spreads
– Week 3-4: Combinations, Hedging
• Week 5-6: Application of Strategies
– Week 5: Solving real cases, interview questions
– Week 6: Applying strategies to hypothetical situations
• Week 7-9: Black-Scholes
– Week 7-8: Understand the mechanism & Greeks
– Week 8: Applying Black-Scholes
– Week 9: Develop the model w.r.t. implied volatility