Multiple valuation method: difference between market price & implied share price of USA’s machinery – construction & mining Industry

Abstract

The journey of undergraduate life ends with submitting this internship report. I have learned so many concepts, theories, and methods throughout the whole journey but was unaware of the practical implementation of my knowledge. However, the internship is such an opportunity where one can implement his knowledge in the practical field. I have done my internship at BanglaCAT, and from there, I get the opportunity to acquire some practical experience. From there, I get some basic idea about how the corporate world really runs. However, I have written this report based on my financial knowledge. Since I have done my Internship in HR, but I find finance more interesting over it. Because of the strict privacy policy and lack of financial information of BCAT and its competitors, I forced to work with the parent company of BCAT like Caterpillar. I have used the multiple valuation models in this report to find out the implied share price of Caterpillar and compare it with the market price. Also, I have done the trend analysis of its competitors. From there, I have found that CAT has the tendency to overvalue its Stock, where most of its competitors follow the undervalued policy to sustain in the stock market. Then, I tried to show the impact of the COVID outbreak on the mining & constructions industry of the USA. Finally, in the recommendation side, I gave some advice to the investors and tried to showcase the pros & cons of overvalued and undervalued stocks. Also, I have mentioned that, before investing in any stock what the investors should check.