Ford Revenue Analysis

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The project is essentially done in three parts: company information, stock evaluation, analyst recommendation.

The company information part should be about 1 page long and talk about the company in general (things that would concern an investor – for example: when was it formed, where is it based, what kind of business is it in, who are the competitors, how has the stock been performing within the last five years and the last year before the analysis date, etc.)

For the stock valuation you will be evaluating FORD motor company using DAILY ADJUSTED CLOSING RETURN data from 5/10/1995 to 12/28/2016, this can be loaded from google finance and pasted into excel. The project will evaluate the stock in three different models:
* CAPM

Ford Revenue Analysis

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*3-Factor Model (FAMA FRENCH)
*4-Factor Model (FAMA FRENCH + MOMENTUM)
Fields needed to complete
The purpose of the study is to see if your stock is overpriced or underpriced given each regression model as of 12/28/2016. What this means is after generating the regression summary output you must calculate what the return for 12/28/2016 should have been using the model, and compare it to the actual return for 12/28/2016 and determineweather it is underpriced or overpriced and what your actions would be should you be the investor. Your report should be detailed and needs to “teach” me each concept from scratch. For example; if you are doing the analysis with the3 factor model, you need to teach me what the model is, what each component is and mean, how did you evaluate the price, what/why do you recommend to do (long/short). Please don’t forget, I need someone who did not take an investment class to be able to understand your analysis and have comfort in reading your evaluation.  Explain each model from scratch. The information needed for the 3 Factor and 4 Factor model will be located on the Kennethfrench.com website where you will utilize the 3 Factory Daily Return in the data library, and the 3 Factor Daily Return plus the Momentum Daily return to complete the 4 Factor Regression.

Ford Revenue Analysis

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At the end of your report, you need to tell me which evaluation method do you think is best for you and why. You will provide me one excel spreadsheet where all of the analysis is completed (I need to see all of the cells as active so if there is a formula in a cell, do not convert that to a number)one word document where you write the report. The excel sheet needs to have all of the data and all of the regression results. The data for all 3 Regressions can be put on one spreadsheet page, but the 3 corresponding regression model results need to each be on a separate labeled sheet. The word document should not have regression results, only the final modeland valuation. I will go on the excel sheet to see if you really calculated the returns or just gathered them from somewhere.

Ford Revenue Analysis

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The paper needs to be in APA format, 8 pages in length, be thorough, detailed, clear and structured. The only references should be in reference to Ford Motor company in relation to history, current state of company, competitors. All references must be of scholarly resources. When teaching the topics and completing evaluations and regression it is assumed you gained the knowledge as a result of this course.
Quality of the write-up: Is it well organized? Is it clear? Does it contain all of the necessary teachings (or are you assuming I know certain things)? Is it detailed enough?
The quantitative part: Did you gather the correct data? Did you organize them in the correct way? Did you calculate the returns accurately? Did you run the correct regressions? Did you calculate the expected return for each model correctly?
Recommendation: Did you give a detailed analysis of the results? Which model’s results are you using for your recommendation and why? Are your recommendations clear and appropriate?

Ford Revenue Analysis

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