Friday, April 22, 2016

How to values stocks (based on profitability and growth) - excerpts from Thomas Howard

Return on Equity = ROE
Net profit margin = NPM
Total Asset turnover = TAT
Equity multiplier = EM

DuPont ratio analysis : ROE = NPM x TAT x EM


Look for Company's growth potential.  

How does a company grow?  - retains earnings for reinvestment in the company.  reinvests the retained earnings in assets, both physical and human, ultimately producing more revenues.  revenues to grow faster than shareholder equity and in turn earnings per share grows faster than revenues.

dividends per share if it exceeds earnings per share, growth is good.
dividends per share growing more slowly than earnings per share means that the company's ability to pay future dividends is improving, which is a positive thing.

Sustainable growth = ROE x retention rate

retention rate is the fraction of earnings retained.

Look for Dividend Growth

V=DPS / (R - G)

V = Current value of the stock
DPS = dividends per share expected to be paid over the next 12 months
R = required rate of return for this particula stock
G = expected constant growth in dividends

Look for Net profit margin

Graham and Dodd Earnings valuation - relationship between a company's growth rate and its price-earnings (P/E) is

P/E = 8.5 + 2G


Monday, December 21, 2015

Project StakeHolder Management

  • Identify the people, groups or organizations that could impact or be impacted by the project.
  • Analyze Stakeholder expectations and their impact on the project
  • To develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.
  • Focuses on continuous communication with stakeholders to understand their needs and expectations, addressing issues as they occur, managing conflicting interests and fostering appropriate stakeholder engagement in project decisions and activities. 
Identify Stakeholders:



Inputs
Tools and Techniques
Outputs
Project Charter
Stakeholder analysis
Stakeholder register
Procurement Documents
Expert judgment

Enterprise Environmental Factors
Meetings

Organizational Process Assets




Plan Stakeholder Management:


Inputs
Tools and Techniques
Outputs
Project Management plan
Expert judgment
Stakeholder management plan
Stakeholder register
Meetings
Project documents updates
EEFs
Analytical techniques

OPA




Manage Stakeholder Engagement:


Inputs
Tools and Techniques
Outputs
Stakeholder management plan
Communication methods
Issue log
Communications management plan
Interpersonal skills
Change requests
Change log
Management skills
Project management plan updates
Organizational process assets

Project documents updates


Organizational process assets updates


Control Stakeholder Engagement:


Inputs
Tools and Techniques
Outputs
Project management plan
Information management systems
Work performance information
Issue log
Expert judgment
Change requests
Work performance data
Meetings
Project management plan updates
Project documents

Project documents updates


Organizational process assets updates