Equity research report (Marriott International) Harvard Case Solution & Analysis

Introduction on equity research report

The equity valuation report is one of the important reports which is formed for the investors as well as stakeholders of the company. The equity research report deals in the current economic position of the company with respect to the current economic position, where the company is located and if the company is multinational then the economic position of the company is compare to across the globe.

The equity research report is one of the important fields and thesis reports which have evolved and transformed the financial sector over the past many years. The investors now believe in fundamental and technical analysis as these analyses are the important risk evaluation analyses which investors believe at most. The technical analysis refers to evaluate the financial performance of the company with respect to its financial position and the financial interpretation of the concerned company.

The technical analysis is performed by the vertical and horizontal analysis of the company and conducts the trend analysis with the help of graph as well as with these techniques the company’s financial performance is evaluated technically. Moreover, the second analysis technique is the fundamental analysis and it evaluates economical position of the company and depends on the future contract and recent decision which affects the position of the company directly or indirectly Such as the company initiates new project then the future income of the projects and synergies affect the current financial position of the company as well as its also affects the stock performance of the company therefore, it is known as fundamental analysis.

The equity research report helps the investor to evaluate the value of the company or risk associated with the company and the volatility of the covered security as well as provides quality assistance to the investors to decide whether to purchase the stocks of the company or to hold the stock of the company in current time or to sell short or simply avoid the buying and selling of the company’s stocks and securities issue by the specified company.

Investment thesis summary

Company name: Marriott international

Sector: Consumer Discretionary

Industry: Gaming, Lodging and Restaurants

Sub-Industry: Lodging

Marriott International Inc./ MD(bloomberg, 2015)

MAR: US (NASQAD GS)

Current Stock Price: 80.30 USD

Marriott International is one of the largest and well established lodging companies;the head quarters of the company is located in the United States of America. The company’s growth is not higher and rapid as compare to the service industry. The growth of the company is steady and it is expanding all over the globe.

The valuation of the company shows that the stock price of the company is evaluated higher as compared to the financial performance of the company. The financial performance of the company shows that it is one of the highly volatile companies as its stock price is overvalued and the current financial performance of the company does not supports the existing stock price of the company.

Equity research report (Marriott Internationa) Case Solution

The models which I have presented in the making of equity research report is based on the conservative growth rates of the selected company and the profitability figure according to the current financial position of the company and the past financial profitability of the company. Therefore, it is observed that the share price of the company could potentially be higher and in case, the lodging industry has better fundamentals and because of the recent news regarding the decision it had took in the recent period had highly influenced the stock price of the company.

Moreover, it had improved the profitability metrics of the company. The stock of Marriott International is also on hold as there is also downside risk.For instance, due to the risk of refinancing and the risk of the contract renewal, these both risks are inherited in the lodging industry therefore, the service business related to lodging highly suffers because of these two risks.

Sources: Nasqad and Bloomberg (nasdaq, 2015), (bloomberg, 2015) (Date: 08 May, 2015)

Description of the company

Marriott International Inc.isone of the leading companiesin the lodging industry and it is also listed in the NASQAD GS and it has more than 3,900 properties from where it operates its business.Italso includes18 brands in its brand portfolio and all associated at theheadquarters of Marriott International. (marriott, 2015)

 The company managed and franchised properties across the globe. The founder of Marriott International was founded by J.Willard and Alice Marriott, and it was guided under the leadership of Marriott family for more than 80 years. ..................................

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