Presentation on theme: "Investment Analysis Luxury Goods First Flight Harley Marine Max Tiffanys Toyota."— Presentation transcript:
Investment Analysis Luxury Goods First Flight Harley Marine Max Tiffanys Toyota
Why this Industry? In this troubling economy, this industry will flourish. The upper class will always have money to spend. Lets analyze leading luxury firms so we can invest smart and join them.
Volume: measured by sales revenue Toyota is biggest by far. They also have the highest Net Income at $17 billion. This volume gives Toyota several strengths: – Money to buy competitors – Develop new technology – Economies of scale – Promote – Success makes borrowing easy $262 billion
Growth: Measured By Sales Increase Toyota Even though Toyota grew only 47% compared to First Flight Inc.s 200%, Toyotas dollar amount growth from 05 to 07 was close to 85 Billion dollars. We think that the last three years for Toyota reflect its future success because of the niche product they provide in Hybrid Technology. This growth and continued success is an indication of Toyotas superior management prowess. This growth means they will continue to enjoy the benefits of their volume long into the future. Billions Percent Growth 47% 200% 83Billion Growth From 05-07
Value: Measured By P/E Ratio High P/E ratio: The company is expected to make strong profits in the future so the high price is justified. Low P/E ratio: The company is expected to not prosper and so it is cheap to own but still probably not a good buy. If other investors are right. If other investors are wrong High P/E ratio The price is higher than justified by the companys earnings potential. The stock is not worth the price. Low P/E ratio: Other investors are not acting on rational investment analysis. A Strong company is cheap and represents a buying opportunity. P/E ratio is the price of the stock to the earnings per share ratio – the price to buy one Dollar of the companys earnings Overpriced Value A bit scary