Objective: To create an equity report on a publicly traded healthcare company through understanding the business model and financials then using the acquired information to forecast fair value for the organization and provide a recommendation.

Late Papers: Papers submitted after the due date will receive a reduction of 10 points each day the paper is late. Papers need to be submitted on Blackboard.

Form: Term papers should be written in a professional format. There is flexibility in how the paper is structured and written (see sample reports provided by various industry sources). However, the paper should focus on key elements of the business and sufficient financial analysis to support recommendation. There is no minimum or maximum length to the paper, however most research reports will be between 2-3 pages. This could vary depending upon use of graphs, tables, and financial information.

Format/Outline: Students have flexibility when submitting the paper, however the paper must include the following sections:

1. Background of business and operating segments (summary)
2. Analysis on the most recent reported quarter
3. Forecast for the next 12-24 months (financial projections should be provided in table format)
4. Valuation for the stock based on your chosen valuation metric. Acceptable metrics include:
   1. The Dividend Valuation Model (see p. 464-466)
   2. Constant Growth Stock Valuation (see p. 466-472)
   3. Price/Earnings Ratio (p. 711)
   4. Market/Book Ratio (p. 712)
5. Summary recommendation
   1. In the summary recommendation, you should state where the stock is currently priced and where you believe the fundamental valuation is. Additionally, you should explain whether you believe the stock should be bought, sold, or held. You can also use an alternative scale which is overweight, underweight, or equal weight.