Financial analysis of British American Tobacco Bangladesh Limited

Abstract

The report provides the background and the financial position of the BRITISH AMERICAN TOBACCO BANGLADESH. At first, I have started with introduction where I discussed about background of the organization, its product portfolio. Moreover, I have done analysis on the common size statement of BATB; it is mainly the vertical and horizontal balance sheet and income statement. After that I have focused on ratio analysis. I have done ratio analysis of BATB of last 5 years from 2012 to 2016. In calculating the ratio analysis, I have used the information of balance sheet and income statement from the annual report of those years. In ratio analysis I have interpreted only time series analysis. Furthermore, I have analyzed the risk and return of the company. Here I have used the information about the company’s price of the stock, the market price of the stock and the risk free rate. After that I have also discussed and analyzed the cost of capital. The main part of the cost of capital was calculating the WACC. In addition, I have analyzed the value of common stock by using non-constant dividend growth model and corporation stock valuation model. I have also included a brief description about the ongoing project for which I was recruited. Lastly, in the appendix part I have given the formulas and equations with which I have done the whole analysis.