Final answer:
To value Reliance stocks and forecast future financials, one would need to access the company's historical financial statements and use Excel to format the collected data properly. This involves creating common size statements, using forecasting factors, calculating financial ratios, and performing sensitivity and scenario analysis.
Step-by-step explanation:
You are asking how to collect financial statements for Reliance over the past five years to conduct a stock valuation and forecast the company's financials for the next five years. The process includes creating a common size statement, proper formatting of data in Excel, forecasting based on selected factors, calculating financial performance indicators, and sensitivity and scenario analysis. To achieve this, you will need to access Reliance's historical financial statements, which are typically available in the company's annual reports or on financial databases. You would then extract relevant data into Excel, format it according to financial analysis standards, and then perform the analysis using various financial ratios and forecasting techniques. Sensitivity and scenario analyses involve assessing how changes in key assumptions will affect the company's valuation.
Steps Involved in the Financial Analysis
- Collecting historical financial data from the company's annual reports or reliable financial databases.
- Formatting the data in Excel into a common size statement and other required formats.
- Forecasting future financial performance using historical data and forecasting factors.
- Calculating leverage ratios and other financial performance indicators to evaluate the company's financial health.
- Conducting sensitivity and scenarios analysis to understand the potential impact of different assumptions on the valuation.