Investment Thesis for AMG Advanced Metallurgical Group (EuroNext: AMG)
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Date
2016-07
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Institute for Applied Economics, Global Health, and the Study of Business Enterprise
Abstract
This investment thesis is an analysis of Advanced Metallurgical Group, a global critical materials company. Our analysis examines the economic trends and factors that affect AMG, and how they adjust to these changes. This analysis is then combined with the Hanke-Guttridge Discounted Cash Flow (HG-DCF) model in order to calculate the estimated share price. A Monte-Carlo simulation is presented to show a distribution of possible free cash flows. In addition to this, we also analyze the proxy statements, and management compensation of AMG to verify that management is aligned with the shareholders. This investment thesis will provide the necessary financial information, along with background information to make an investment decision.
Description
The Studies in Applied Finance series is under the general direction of Prof. Steve H. Hanke, Co-Director of the Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise (hanke@jhu.edu) and Dr. Hesam Motlagh (hesamnmotlagh@gmail.com), a Fellow at the Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise.
This working paper is one in a series on applied financial economics, which focuses on company valuations. The authors are mainly students at the Johns Hopkins University in Baltimore who have conducted their work at the Institute as undergraduate researchers.
Keywords
finance, investment thesis, Advanced Metallurgical Group, AMG, free cash flow, discounted cash flow, depreciation, financial modeling