Business analysis and valuation - Case study of Minh Phu Corporation

Abstract

Business analysis and valuation is really important for investor to make investment decision. The purpose of my report is to analyze Minh Phu corporation and find out whether this company is a good firm to invest or not.

Porter’s five forces model is used to analysis the fishery which Minh Phu is operating in while ratio and cash flow analysis are applied to determine how financial performance of Minh Phu was during the period from 2007 to 2011. After that, I depend on some assumptions to forecast this company in the next five years from 2012 to 2016. Finally,

I utilize discounted cash flow-free cash flow to firm to evaluate the company’s stock price.

Although Minh Phu is now a leader in exporting seafood products, its inventory problem is quite bad in recent years. Therefore, in the next five years, based on my forecast, Minh Phu is not a good firm to invest. However, when Minh Phu can handle its inventory, this company can recover and develop in sometime later.