FINANCIAL ANALYSIS

Financial Analysis

Financial Analysis

Part A

Steps for Equity Valuation Process

In equity valuation process, factor that I consider to be important is business strategy analysis. This factor is preferred over other factors because it enables the investor to assess to the long-term prospects and strategies of the company. It not only presents a reflective point on future financial condition of the company, but also defines the capability of a company to succeed as compare to other factors (Arnold, 2008).

In developing the financial strategy, company must take into account the dynamics of macroeconomic processes, trends in the development of domestic financial markets and diversification opportunities of the company (Arnold, 2008). In this context, steps for equity valuation process inculde:

Step 1: Understand the company and business

Step 2: Download historical data and forecast earnings

Step 3: Select the appropriate valuation model or models for your company

Step 4: Make the investment decision

Easy Jet - Company Overview

EasyJet is a low-cost UK airline operating in Europe, Turkey and North Africa. The company's mission is to provide customers with safe, good value, point-to-point air services, and to offer a consistent and reliable product and fares appealing to both leisure and business markets. EasyJet registered consistent growth over the review period, with a number of new destinations being added in 2008, many of which came with the acquisition of GB Airways. EasyJet is now the leading airline at Gatwick Airport, which has a good catchment area of potential customers in the densely populated southeast of the UK. EasyJet was established in 1995 as a low-cost airline, and has expanded rapidly since. Its initial flights were from London Luton to Glasgow and Edinburgh and booking a flight was only possible by telephone. Travel agents would not sell easyJet flights, as they received no commission. Internet reservations began in 1998, and quickly became the most popular way of booking an easyJet flight. The strategic management accounting is uniquely qualified to design more rigorous cost-effective strategies take strategic decisions with minimal risk. Of the pillars underpinning; the financial and accounting management is precisely the latter that has gained in the last decade more role, to avoid legal interventionism commercial voluntarily, and stiffness accounting principles generally accepted in underpinning the first unleashing strategic creativity. This has been possible largely by the development of new information technologies and the desire to assess more accurately through the indicators of financial and non-financial, in a globalize environment in which we have come to be seen as keys to success and increased competitive management knowledge. The skills required for each strategic activity are different, and measurable success factors are also the same individuals. Accounting strategic direction through strategic steering, the decisions most appropriate based on non-financial indicators, which have previously been configured in different strategic maps that display the different scenarios that can address and to optimize our resources in the knowledge society.

Financial Situation of Easy Jet PLC

Company sales increased at an annualized rate of 4.4% over the five years through March ...