Example of Analysts’ Valuation Process: Information Context, Research Findings, and Future Priorities

Abstract

The focus of the new economy is on finance, information, and people, the relevant sector with equity valuation, most closely associated with the valuation process, it gains interest in today's information society and globalization with its distinctive characteristics. Issues concerning the information content of the analysts’ research to determine the intrinsic value of the firm’s stock are crucial since the most significant part of this process remains hidden or literally, it is a “black box”. This example further studies the valuation process from the sell-side analyst approach, presenting an investment research report beyond valuation models motivated by 1) some gaps in literature/ research, 2) the growing trend of worldwide university competitions between teams of students organized by CFA society and Ben Graham Centre and 3) my previous real-life learning experience in writing investment research report by competing at CFA Research Challenge representing University of Macedonia. This paper, which has an indirect relationship with relevant work for doctorate thesis, identifies research of distinguished quality and usefulness in the valuation process area, highlighting pedagogical implications of the study with business link (Coca Cola Hellenic) by almost entirely using excel, on important issues concerning the information content since the crisis of mid-2007 and to extract clear conclusions.