Job Satisfaction Dissertation Example | Topics and Well Written Essays - 16500 words

Job Satisfaction - Dissertation Example The level of employee’s job satisfaction is related to his or her expectations towards the job (Porter and Steers; 1973); this depends on many factors such as pay, promotion, or autonomy. For these expectations, each employee has certain preferential values and these preferences vary across different individuals. The above view is supported by Pearson (1991) who had found that when the level of unmet expectations becomes large, there is low job satisfaction level and the probability of negative behaviour and turn over increases. There is no doubt that Job satisfaction is an interesting subject to both, people inside and outside the organisation (Spector 1997); Spector (1997, p.2) looked at job satisfaction as a humanitarian perspective and stated that people deserve fair and respectful treatment. While Ali (1985) looked at job satisfaction as a function of individual and organisational variables, Metle (1997) believed that individual demographic characters are likely to be the sources of variations in job satisfaction. Locke also points out that job satisfaction is related to other phases of the employee’s life. It has been shown to affect positively, towards family, and towards self. Job satisfaction has also been shown to affect positively on the employee’s physical and mental health (Shell & Dunken 2006). Job satisfaction is considered as an important factor for establishing an organisation’s health; the quality of service rendered by an employee is affected by the job satisfaction level of the employees (Fitzgerald et al. 1994). ... ariables on quality services, such as infrastructures and internal relationships, should also be recognised as factors affecting job satisfaction (Crossman and Abou-Zaki 2003). 2.1 Importance of Job satisfaction: In recent times, Job satisfaction has been one of the most significant topics in organisational research. Job satisfaction has a direct relationship with the organisational climate. In view of the fact that satisfied employees create additional positive working environment for organisations, it is worthwhile to do a research on the employee job satisfaction in organisations (Shell & Duncan 2006). On the other hand Okpara (2006) explained that job dissatisfaction leads to negative job attitudes (i.e. absenteeism, poor performance and low productivity), which is supported by Al-Ajmi (2001) and according to him, these negative job attitudes results in low productivity and lesser profits. Moreover, Barrie (2001) has also reported that a lack of personal satisfaction is the reason of quitting the job. Literature show that satisfied workers tend to be self motivated and self motivated behaviours exceed the formal requirements of a job (Schnake 1991; Organ and Revan 1995). In contrast, dissatisfied workers according to Spector (1997) show an increased tendency for counterproductive behaviours (i.e. withdrawals, burnout, and workplace aggression). Moreover Everts (2001) argues that the behaviour of the employees who are not satisfied, may impact negatively on their performance, as well as those around them. According to Whinghter and Blazer (2005) knowledge, understanding and improving job satisfaction can contribute positively towards the organisational goals, so the study of job satisfaction is important because of the following reasons: 1- Reduced Employee

Pathway Essay Example | Topics and Well Written Essays - 1000 words

Pathway - Essay Example Moreover, design thinking can be applied to several global issues like healthcare issues. I have completed the courses and learned about pathway themes in classes. Design thinking is used as a guide in designing of products and process in order to satisfy the customers. Innovation in products and services is also emphasized by design thinking. It is an analytical thinking process that will help me to achieve goals. My major is business management, and the courses that I took for my pathway are MGMT 6 (Business Ethic), MGMT 80 (International Business), and OMIS 17 (Business Computing). Design thinking will help me to analyze several issues and facts in international business practices. Moreover, the concepts of design thinking can be used to innovatively conduct a synthesis to formulate solutions to different issues. The concepts of design thinking will help me to analyze business ethics in the business practices of several global and domestic firms to find solutions to problems. Answ er 2 Analysis: Disciplinary Perspectives on an Issue Business practices of breastfeeding products are a global issue that can be examined through several approaches that are identified in MGMT 80 and MGMT 6. Nestle is one of the leading food product companies in global market. The company was engaged in some unethical business practices. The marketing strategy that Nestle implemented was unethical. These unethical marketing strategies have destabilized the potentiality of breast feeding products in several developed and developing countries. These in adequate strategies have affected the brand image and business performance of Nestle badly in the global market. The same kind of Issue can be looked at through the lens of International Business Practice. My MGMT 80 class studied the business practices of global firms. I have realized from the class that an organization that is doing international business practices must take into account the different customer standards. On the other hand, they must also be able to maximize their profit. For an example, Wal-Mart the leading retail chain in the global market had to face several problems regarding the selling of furniture in America. They had violated the environmental law by using the natural resources in an unethical way. Therefore, they had to stop the selling of wooden furniture. In order to regain their reputation they started several social activities. For an example, Wal-Mart delivered 100 truckloads of free goods, 20 million US Dollar in cash and food for 100,000 meals in order to help the people of US who were affected by devastating Hurricane Katrina. The social activities helped the company to once again maximize their profit. Applying the concepts of design thinking in Accounting and information systems, I can effectively appraise the business practices of global firms. Accounting and information systems have helped me to gather a concrete knowledge and understanding of business ethics issues in busine ss practices. The understanding of the issues and required analytical skills will help me to understand the business environment factors. These will help me in the near future when I will start my career in this competitive global market. Answer 3 Reflection: Looking Back and Looking Forward Learning about this pathway theme helps me to

Principles of Economics.Monetary Policy and the Federal Reserve Essay Example for Free

Principles of Economics.Monetary Policy and the Federal Reserve Essay Investment and consumption decreased during the 2007 and 2009 recession. Government expenditure can increase Aggregate demand because it increases liquidity in the market. The government may operate below full employment when job seekers are more than available job hence end up accepting low wages. The multiplier can have a negative effect when people lose jobs as a result of government cut spending. This causes initial decrease in national income. The relationship between marginal propensities and multiplier is that an increase in MPC leads to an increase in multiplier. Similarly, increase in MPS causes a decrease in the multiplier (Farmer, 2008). 2. Fiscal Policy                9/11 attack led to decrease in aggregate demand, in United States. An example of a sector that was hit hard is entertainment and travel sectors. It also led to decrease in personal consumption. The attack caused an increase in equilibrium price levels. This is because there is an inverse relationship between Aggregate demand and equilibrium price levels.An Expansionary fiscal policy and Contractionary fiscal policy is used to increase aggregate demand. Expansionary fiscal policy is a policy used during the recession to increase AD by increasing government spending or decreasing taxes. Contractionary fiscal policy is used during inflation in order to decrease AD by decreasing government spending or increasing taxes (Farmer, 2008). After September 11’s attack, the government increased expenditure in different sectors such as national defense. 3. Money and Banking                Factors that led to the mortgage default crisis is much borrowings and flawed financial modeling majorly based on an assumption that prices of homes only go up, greed and fraud. Mortgage defaults affected lending banks in that their loans were not repaid leading to huge losses. In many cases, they got real estate that was valued far below what mortgage was when borrowers had a note. Default of bonds income backed by mortgage loans was interrupted banks were left with unwanted real estate (Friedman, 2010). Securitization is pooling different types of contractual debt. TARP is a program formed by the government of US to buy assets and equity from institutions that offer financial services in order to strengthen the financial sector. TARP opened a window of opportunity for banks to pay their own debt and acquire other businesses instead of lend money to private sectors. The Federal Reserve injected funds into the credit markets in order to help them lend again. It also reduced the target federal funds rate. Major provisions in the Wall Street Reform and Consumer Protection Act include Office of Insurance which creates Federal Insurance Office that monitors aspects of the insurance industry and Consumer Protections that creates Consumer Financial Protection Agency which protects Americans from unfair financial products and services. 4. Monetary Policy and the Federal Reserve                The Federal Reserve System refers to the central banking system of United States. Fed was launched in response to a series of financial panics. Federal Reserve Bank of Atlanta covers the states of Alabama, Georgia and Florida, 74 counties in Tennessee, 38 parishes of Louisiana, and 43 counties of Mississippi. William H. Rogers, Jr is the current Chairman of this Fed. This fed should remain politically independent because its rate is determined by market and is not explicitly determined by the Fed. The target for federal funds is adjusted by 0.25% or 0.50% at any given time. Fed give liquidity to banks to enable them gives credit in times of recession. Federal Open Market Committee is a committee in Federal Reserve System that is charged with the responsibility of overseeing the country’s open market operations. Fed should decrease their rates to help spur the economy of US. This is expansionary monetary policy (Axilrod, 2011). 5. Free Trade                I support free trade and the NAFTA. They are based on comparative advantage. Countries produce what they can export cheaply. US exports goods like corn and meat to Mexico. Some of goods imported into USA include snacks and processed fruits. However, despite the having the benefit of increasing growth and collaboration between countries, free trade has the cost of dumping goods into the country and destroying infant industries. Free trade should be restricted on some goods like natural resources. 6. Foreign Exchange                US dollar is currently losing value against the euro. This is because the European Union is finding solution to Euro crisis. Dollars are supplied by the Central Bank of USA. A dollar loses value when its demand goes down. For example, whenever US citizens buy products from Germany, the demand for Euro goes up against the Dollar. A falling US Dollar increases ones travel expenses. This is because has to use more dollars to buy a foreign currencies which are expensive. However, a cheap dollar is bad for the US economy because it discourages exportation. A free floating exchange rate refers to a monetary system whose exchange rates are free to move due to forces of the market without intervention by the government (Friedman, 2010). References Axilrod, S. H. (2011). Inside the Fed monetary policy and its management, Martin through Greenspan to Bernanke (Rev. ed.). Cambridge, Mass.: MIT Press. APA formatting by BibMe.org. Farmer, R. E. (2008). Aggregate demand and supply. Cambridge, Mass.: National Bureau of Economic Research. Friedman, M., Heller, W. W. (2010). Monetary vs. fiscal policy. New York: Norton. Starr, R. M. (2011). General equilibrium theory: an introduction (2nd ed.). New York: Cambridge University Press. Source document

Power of the Medical Monks Essay -- Sharp Pain, Machine Gun

Sharp pain. You look down and see a spreading patch of red. You know the end is near as you drop to the ground. Your rifle landing next to you. BANG! The men around you fire and advanced. This land has been at war with itself for a year. In the distance you see the gray uniforms of the Confederates. Next its all black. You awaken to see a lull in the fighting as two men pick you up on a litter and carry you to the waiting Carriage. While Napoleon’s personal surgeon Dominique-Jean Larrey, invented the â€Å"flying ambulance† the worlds first modern version of a ambulance service.(5) True battlefield medicine, and in correlation to this true EMS, did not begin until Dr. Letterman established the three tier battlefield medical system(1). This comprised of an aid station, the patient would then be transferred to a field hospital, and finally a regular hospital. This system revolutionary at the time of design(civil war) increased survival rates, and started to promptly provide medical care. (3) At the beginning and before the civil war there was little in the way of Sanitary practices. There was also little in the way of an actual Medical corp. The surgeon general at the time, Thomas Lawson no M.D., thought that sanitary practices were â€Å"unnecessary† at that his methods were â€Å"adequate and effective†. Lawson attained this position through seniority before being impeached through public opinion. Following his impeachment then allowed for the creation of the Sanitary Commission(early form of the Red Cross), as well as the implementation of Dr. Letterman’s three tiered approach. If it wasn’t for innovations like these our entire medical practice would be years behind what it is.(1) Rat-a-tat-tat, Rat-a-tat-tat. The sharp crack of machine ... ...imited than that of non-military M.D‘s or D.O.’s. Most military doctors are trained in multiple disciplines. The main reason for this is due to the instability of there responsibilities. A M.D. in the military can be treating mal-nourishment one minute, and rapid hemorrhaging the next. Combat Medics skill set hasn’t changed much; however, now there trained in some psychology. Military Medicine has a long and noble history filled with twists, and turns. Today practicing medicine in the military has allowed us to bring more men and woman home from combat; A standard that, while sadly exists, is welcome. Military health professionals prove a vital and necessary service, one that goes unsung. Today military medical professionals are warrior monks on the battlefield, they practice a peaceful art in a dangerous area. Saving the lives of everyone regardless of creed.

Comparison of Urban Sociological Theories Essay

Comparison of Urban Sociological Theories In order for an urban sociologist to discover â€Å"How urban societies work,† theories of â€Å"urban ecology† or â€Å"political economy† are used as a guide in their research. Urban ecology refers to the importance of social structure and social organization as shaping social life in the city. Urban ecologist concerns for social order, social cohesion, community ties and social differentiation offer key insight to how societies work (Kleniewski, 2001). Alternatively political economy stresses the use of power, domination and resources in the shaping of cities (Kleniewski, 2001). Urban sociologists’ theoretical approach to research questions is based on fundamental assumptions that they find most useful for understanding the operation of the social world. Therefore researchers using these different theories will ask different questions, examine different data and interpret their findings in different ways (Kleniewski, 2001). In the early years of 1910-1920, a time of social change and urban growth, urban sociologists in the United States, the Chicago School, were directly confronted by the diversity, liveliness and apparent fragmentation of urban life. The urban sociologists of the Chicago School drew a concern for order, cohesion and social relationships (Kleniewski, 2001). The founder of the Chicago School of urban sociology was Robert E. Park. He believed that cities are like living organisms, composed of interconnected parts and that each part relates to the structure of the city as a whole and to the other parts (Kleniewski, 2001). Park called his approach to urban life â€Å"human ecology,† a term used interchangeably with â€Å"urban ecology. Human ecology studies the â€Å"social norms† which are rooted in the relationship between human populations and the environment or territories they inhabit, stressing the orderly interaction of interdependent parts of social life in urban areas (Kleniewski, 2001). Human ecologist, Louis Wirth shared with the theoretical antecedents of urban ecology, Tonnies, Durkheim and Simmel, the notion that social interactions in cities were different from social interactions in rura l areas or small communities. He believed that social interactions in modern industrial cities were impersonal and fragmented. He believed that factors such as size, density, and heterogeneity were responsible for social relations found in cities (Kleniewski, 2001). This theory of human ecology was used to study human behavior such as, lives of gang members, homeless people and immigrants and to study changing land uses over time in order to show how the different populations of the city adapt to and compete for territories (Kleniewski, 2001. In comparison to urban ecology, political economy is concerned with how urban societies work. Although, political economist developed different understandings and interpretations of how urban societies actually work. In the 1970’s the city had many social problems which included welfare, unemployment and tax inflations. Theorist of political economy, Marx, Engels and Weber viewed the city as a site of struggle due to unequal distribution of resources (Kleniewski, 2001). Therefore in contrast to the urban ecology theory of humans being immediately dependent on their environment, the theory of political economy stresses that the city relies not only on its environment but its social arrangement, economic and political functions. Also in contrast to urban ecology, residential patterns are not only influenced by humans just adapting to their natural environment but by economic inequalities. This leads to competition. In contrast to urban ecology, competition not just among groups for space but among groups for control of economic resources. Political economists theorize that â€Å"social norms,† in contrast to urban ecology are not only influenced by size and density of the population but also influenced by the values of dominant groups (Kleniewski, 2001). These struggles or social forces help shape urban patterns and urban social life. Therefore, class, social status, political power, racial and ethnic conflicts also play a major role in shaping the city (Kleniewski, 2001). The Political Economy Perspective

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Stock Valuation And Analysis Of Proton Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3487 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? 1.0 Introduction This report shows our stock valuation on Proton that is listed on Bursa Malaysia, by using 2009 as the latest financial year. Fundamental analysis framework is being used. First, we start with the qualitative aspects of a company like Business Model, Competitive Advantages, Management, Financial and Information Transparency, Governments Role, Customers, and finally Latest News. Don’t waste time! Our writers will create an original "Stock Valuation And Analysis Of Proton Finance Essay" essay for you Create order This will be shown on sector Qualitative factors section. Next we dive deeper to company analysis. We estimate the intrinsic value of the companys common stock using the general approaches in fundamental analysis. It consists of Price/earnings ratio, Price/cash flow ratio, Price/book value ratio and Price/sales ratio. This will be shown on fundamental tools section. Based on the various values that we have estimated above, we find a single value that most appropriate as companys common stock price and compare it with the current market price. Determination on it will include whether the stock is overvalued, undervalued or correctly priced, and recommendation to investors is given. This will be shown on Dividend Discount Model section. Finally, we provide our own insights and reasoning, and this will be shown on Insights and reasoning section. 2.0 Qualitative Factors 2.1 Business Model The main business activities of the Group encompass vehicle engineering, research and development, manufacturing, distribution, sales and after-sales services. The Group is also involved in financial services and property management in supporting the main business activities. The Group also has in its portfolio, the world renowned Lotus sports cars. 2.2 Competitive Advantages On 2 September 2008 Detroit Electric announced plans to progressively roll out affordable electric vehicles worldwide by the end of 2009. Proton cars are to be used and tested in order to validate Detroit Electrics technology and explore the potential to collaborate to create a range of pure electric cars. Detroit Electric has to date integrated its electric drive systems into Protons Lotus Elise and two Proton passenger cars. Detroit Electric hoped to collaborate with Proton to sell electric cars for the Southeast Asian market or to use Protons existing manufacturing platform to produce electric cars under the Detroit Electric brand. The company planned to roll out 30,000 electric cars by 2010, as he demonstrated their performance at a Proton test circuit in Shah Alam, west of the capital Kuala Lumpur. Detroit will use Protons tooling and production line for its vehicles, but with different styling than Protons existing line. In return, Proton will get to sell its own cars in S outh-East Asia with the Detroit lithium-ion electric power train insidethe incredibly sci-fi sounding Pure Electric Magnetic Flux Motor. Fossil fuel is a finite resource so we will have to find an alternative energy source, like the primary drive of the car is electric and the motor can be supplied with current in many different ways fuel cells, batteries, wireless transmission, or maybe we will see a future where our roads are magnetized to interact as linear induction motors with vehicles running over it. Proton expects to record RM2billion in the next four years in line with its strategic agreement with Detroit Electric for licensing and assembly. 2.3 Management Proton is exposed to a multitude of risks, either residual or inherent in the course of its daily operations. Ensuring that these risks are effectively managed and capitalised is imperative in order to ensure maximization of shareholders value. The Group Risk Management Unit is available to ensuring that an appropriate risk management framework exists within the Group and is effectively implemented to manage the key risks of the organization on an on-going basis like Market Risk, Credit Risk, Country Risk, Regulatory and Intellectual Property. Major initiative includes Risk Assessments for Business Planning, Risk Assessment for New Product Introduction, and Risk Awareness and Profiling Sessions. 2.4 Financial and Information Transparency Sufficient transparency implies that a companys financial releases are written in a manner that stakeholders can follow what management is doing and therefore have a clear understanding of the companys current financial situation. For Proton, its financial situation is sufficiently showed out in its annual report clearly. 2.5 Governments Role Proton is Malaysias largest investor in research and development, spending about RM5 billion on it. Government policy also has kept the Proton cheaper than other makes by the simple strategy of taxing the competition, while giving Proton exemptions or rebates from these same taxes. Duties on packages of parts for assembly into complete cars in Malaysia is said to average about 30%. Proton is exempted from most of these. 2.6 Customers Proton exports cars to the United Kingdom, South Africa, and Australia and the company is aggressively marketing its cars in several other countries including the Middle East. Besides that, Proton has also been exporting a small volume of cars to Singapore, Brunei, Indonesia, Thailand, Nepal, Sri Lanka, Pakistan, Bangladesh, Taiwan, Cyprus and Mauritius. 2.7 Latest News Latest launch of the Exora Malaysias first home-grown MPV has surpassed even the most demanding market as n terms of quality, the Exora is PROTONs first model to breach the 80% CFC (Concern Free Car) level and having surpassed all European crash regulations, the Exora is at par with the other MPVs in the market. This proven that Protons car quality has being bring to a better and safer level, as we usually complaint on Protons low quality design. Exora also won Asian Auto VCA Auto Industry Awards 2009 Best Local Assembly MPV too. 3.0 Fundamental tools 3.1 Price to Earnings Ratio The Price to Earnings Ratio (P/E) is looks at the relationship between the stock price and the companys earnings. Price to Earnings Ratio (P/E) = = RM = 11.64 * Earnings per Share (EPS) = = 33.6sen The P/E gives us an idea of what the market is willing to pay for the companys earnings. The higher the P/E the more the market is willing to pay for the companys earnings. The other way round, a low P/E may indicate as lack of confident by the market or it could mean is a sleeper that the market has overlooked. There is no correct answer for the interpretation of P/E because part of the answer is depend on the willingness to pay for the earnings. The more we willing to pay means that we believe the company has good long term prospects over and above its current position. Another investor may not see the same value and think that we are wrong. Because of that, some investors may read a high P/E as an overpriced stock and that may be the case, however it can also i ndicate the market has high hopes for this stocks future and has bid up the price. In this case, we can said that the Protons P/E is overpriced because we can see that the companys growing is very slow but the P/E is consider high, so we said that this is overpriced. Since there is unstable variable EPS trend between years to year, therefore we assume that the EPS trend will drop by 5% for next year. Besides that, we make this assumption also because of the slow growing of the company. Intrinsic Value = P/E estimated EPS* = 11.64 0.3192 = RM 3.72 *Estimated EPS = RM 0.336 95% = RM 0.3192 Intrinsic value is the value investors use a variety of analytical techniques in order to estimate for the stocks and hoping to find the true value of the investment exceeds its current market value. For this case, the intrinsic value is RM3.72 which is lower than the market stock price, RM3.91 this means that the companys stock has more expensive than the true value. 3.2 Price to Cash Flow Ratio The Price to Cash Flow Ratio (P/CF) is a ratio used to compare a companys market value to its cash flow. This ratio seems better than P/E because its more likely to be accurate, as earnings data can be manipulated more easily than cash flow can. Price to Cash Flow Ratio (P/CF) = = RM = 9.68 * Cash Flow per Share = = = 0.404 The P/CF is used to evaluate the investment attractiveness, from a value standpoint, of a companys stock. This metric compares the stocks market price to the amount of cash flow the company generates on a per-share basis. This ratio is more reliable basis than EPS to evaluate the acceptability, or lack thereof, of a stocks current pricing. Other than that, many investors also prefer P/CF since it removes the effects of non-cash factors like depreciation. By calculating the ratio, the ratio gives us the P/CF that indicates as of Protons stock at RM3.91 was trading at 9.68times the company cash flow of RM0.404 per share. The average P/CF tends to vary among industries. For more capital-intensive companies, P/CF is often lower than those businesses that have lower capital requirements. For this case, Protons seem that have a quite high P/CF that mean than this company have a lower capital requirement that not easy to progress. Since this company have lower capital req uirement, mean that this company would not have much progress in the future. So that in theoretically this company may not have much change in operating cash flow activities or maybe drop. Therefore, we can make a estimation of the companys cash flow per share may decrease by 3%. Intrinsic Value = P/CF estimated Cash Flow per Share* = 9.68 0.39188 = RM 3.79 *Estimated Cash Flow per Share = RM 0.404 97% = RM 0.39188 The intrinsic value calculated is RM3.79 which is lower than the market stock price, RM3.91 by RM0.12. This shown that there is not worth to invest on this company but besides this still got much consideration to consider before invest such as the future progress of the company. We also can consider to invest in this company since there is a very small different between the intrinsic value and market value. 3.3 Price to Sales  Ratio Formula: Sales Price Per Share = Total Revenues or Sales Average Shares Outstanding Beginning total shares outstanding = 462 056 923+87 156 079 = 549 213 002 Ending total shares outstanding = 462 056 923+87 156 079 = 549 213 002 Average Shares Outstanding = Sales Price Per Share = Formula: Price to Sales Ratio = Stock Price Sales Price Per Share = = 0.382 This ratio provides a relationship between the current price of the stock and the total sales per share of the company. The lower the result you get is, the higher the value the market places on the stock. If the P/S ratio were high, that would mean that each ringgit invested in the company would generate low sales revenues, and generally could be said that the company is overvalued. Investors often use the P/E ratio and the Price to Sales Ratio as complements of each other. Usually Price to Sales Ratio provided as a strong alternative only if P/E ratio is non-existent, in the other words, the company currently dont have any earnings. If the company has high P/E, but a low P/S Ratio, it could imply that the company cannot turn all the profits into a net profit and generate value for their shareholders, which also mean that they failed to maximize the shareholders wealth. As a rule of thumb, companies with a P/S Ratio below 1.0 are recommended for a purchase. But in this case, currently the company had a profit of RM184.6 million, so the P/E ratio will be more preferable for us to decide whether to buy the stock, hold the stock or sell the stock. Although current P/S ratio shows a low ratio of 0.382 which if under condition of no earnings, it encourages us to invest to the company. But after consider the probability of company unable to turn sales into profit as well, and the high P/E ratio which brings the risk of over expectation over the stock, we recommend that take the P/E ratio as main indicate, which not to buy the stock. Investors believe the future value will go up due to proton cooperate with Detroit electric to assemble pure electric vehicles for export. So base on this information we assume the sales price per share will increase 5%. Intrinsic value: 10.236 x 105% = 10.75 10.75 x 0.382 = 4.10 In the future the stock price will increase to 4.10, it show the value is higher than 3.91. It means that the price of the stock has gone higher than what it has been recently. If you are looking at selling it, now is the time to sell. 3.4 Price to Book  Ratio Formula: Price to Book Ratio = Stock Price Book Value per Share = Book value can be thought of as what would be left over for shareholders if a company shutters operations, pays off its creditors, collects from its debtors, and liquidates itself. If the P/B ratio is less than one, it can mean the market is nervous about the value of the company and is unwilling to pay full price. Not this only a P/B ratio below one can also mean investors have incorrectly valued the stock. Furthermore, a lower Price to Book ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware this varies by industry. So in this case, the ratio is 0.46 the investor should not invest on this proton company due to the market is nervous about the value of the company and is not willing to pay full price. The total book value increase by sale or issue new shares units. Base on the historical Shareholding Statistics Analysis the book value will maintain due to proton ne ver issue new shares to the market. Since they dont have sale or issue new shares means the intrinsic value is remain the same. 3.5 Dividend Discount Model DDM Dividend Discount Model is a procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value. The idea is that if the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued. The DDM is calculating by the formula of: Value of stock = Dividend per share / (Required rate of return Dividend growth rate) Which: Required rate of return (ROR) = Rf + Bi (Rm Rf) Dividend growth rate (g) = ROE x b To calculate the DDM, firstly we need to compute the value of required rate of return, and then follow by the dividend growth rate. Required rate of return = Risk free rate + (market rate of return risk free rate)* Beta of the stock = 2.053 + 1.037 (4.103-2.053) =4.179% Dividend growth rate (g) = ROE x b = 3.509% x 88.843% = 3.118% *Return on Equity (ROE): = Net Income/Average of Shareholders Equity = = 3.509% Stockholders Equity = Total Assets Total Liabilities *Retention rated (b): = Net Income Dividend Net Income = = 88.84% After get all the values needed for the DDM formula, we can come out the intrinsic value which count out with DDM: V0 = = = 3.77 * Dividend payout = 0.336 x (1 0.8884) = 0.04 Protons latest last quarter price of RM 3.91 per stock shows that the dividend discount model suggests that Proton is currently been overvalued. The difference between the actually price and the intrinsic value is RM 0.14, which is higher 3.77%. Theoretically its recommended that better sell off the stock on hand, because current stock has overvalued. But in our opinion, since the difference only RM 0.14, we can also choose to hold the stock and see the situation a while more. This is because based on the data of December 2009, stock price of Proton also fluctuate between RM 3.90 and RM 4.10, a narrow range. A high actual price doesnt mean that it must be sell off, maybe is because of high expectation of market investors thought that Proton company can generate profit for them? Although currently its been overvalued, but since its stock price considered as quite stable also, which the range of fluctuation is not high , so we also can choose to hold the stock and see the situation first, before we make the decision. Maybe we will loss much of money just because of scared bearing some risk, indeed we know that, no risk equal to no return, sometimes although the calculation show a negative signal, but maybe we also can go through for it, some more the difference between the intrinsic value calculated and actual price just got RM 0.14 difference. 4.0 Insights and Reasoning After look at the qualitative factors and the result of fundamental tools, we have different results that affect our decisions. For short term, we should consider hold it if we have buy any stocks from it. However, when we are looking on the long terms, things are getting different. Proton is still quite unstable yet, as it is fluctuate as the international market having changes. Currently, we can see the financial statements values are having rises and drops and resulting positive earnings and negative losses. This is because Proton only has better market in Malaysia, but not in international market. It only contributes a little percentage on international market share on automotive industry. But, thing may getting different in the future. First, we usually heard consumers complaining on the low qualities of Protons cars, thus results a broad mind that Proton produces dangerous and low quality cars, it is not worth to buy it if you are think your life worthy. However, by the latest production of Exora, things are getting different. To ensure our loved one is protected in the Exora, Proton had spent millions of dollar in crash testing the Exora. A total of 32 unit of the Exora had been destroyed during the process. The crash test is done using the Applus+ IDIADA facility in Spain. All those test were done to ensure the Exora obtain Euro NCAP 4 star standards. With all the safety features developed by the Protons engineer, the Exora managed to get the 4 star Euro NCAP rating out of the maximum of five. This meaning that our Protons cars is getting par with other famous branded cars on safety level. This is aided further by the lotus technician that doing handling adjusted of Protons cars. Protons cars quality is getting higher, is we believe it will improve furthermore in the future. When that happen and our broad mind of Proton low quality cars does not exist anymore, Proton will have a more stable market, not just in Malaysia, but in the international market. Next, what we concern is the partnership with Detroit Electric. As we known, the precious material on earth petroleum is not infinite. It has its limit and going to finish soon. So, many will find alternatives to aid this problem, and electric cars are one of it. The Magnetic Flux Motor Technology ensure environment friendly and did not use single petroleum at all. We believe in future, when petroleum is almost finished, electric cars that charge their car through batteries will become greatly popular among the consumers, as that time petroleum price will be sky high and impossible to reach by normal consumers. Our opinion on Proton actions that partner with Detroit Electric is that Proton done a good job to looking in the future. Maybe other competitors will rise along, but Proton started earlier than other. This initiative will bring great advantages to Proton. When we have looking on those possibilities, we conclude that Proton having great potential to grow strong ly in the future, maybe not in five or ten years, but after it, in the long terms. When that happens, the share prices will rise greatly and become a great share to invest with. Thus, we can actually invest our money on it, when the price is still low, as it may multiply its value greatly in the future, and bringing a very good return. 5.0 Conclusion Fundamental analysis is the process of looking at a business at the basic or fundamental financial level. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea of the value its stock. Many investors use fundamental analysis alone or in combination with other tools to evaluate stocks for investment purposes. The goal is to determine the current worth and, more importantly, how the market values the stock. Various analyses had done on Proton, and this report shows it all. From the qualitative brief market analysis and relevant industry analysis, to the quantitative the relative valuation techniques of fundamental analysis Price/earnings ratio, Price/cash flow ratio, Price/book value ratio, and Price/sales ratio. From our interpretations, in short terms, Proton is still not a good company to invest with, due to its risk that seemly high compare to others. However, we have to remember that usually high returns are bring ing by high risks. When we are looking into the long terms future, we believe that Proton will grow greatly and bring back great returns to us. In conclusion, if we are looking on the short terms, we should not invest on Proton due to its high risk and low return. But when we are looking on the long terms, we should do the opposite ways, as we forecasted that its return will multiply itself in the future.